Become Recognized Experts in US-CANADA Tax Preparation

Cross Border Tax Specialist

Canada is the largest trading partner of the United States due to proximity. They have a very close economic and cultural ties. Many residents of one country often move to the other country to invest, to study, to work, to conduct business or even to pledge retirement. Due to the very unique tax systems of both Canada and United States, these two countries signed a tax treaty, also known as, Article XXIV of the Canada – U.S. Income Tax Conventions in 1980. This treaty sets out the rules for foreign tax credits which are available in situations where each nation claims a right to tax the same income. Moreover, the treaty also deals with the solution to be applied to specific types of income, specific occupations or financial investments,withholding taxes, and the determination of residence.

An individual or company who claims special exception from taxation under the specific tax laws in either U.S. or Canada because of potential double taxation may invoke protection under this treaty. Canada-US Tax Accountant is an expert in handling this.

If you’re a Canadian working in the United States, the Canada-US Tax Treaty gives you special rules to determine how you are taxed. Likewise if you are a U.S. resident working in Canada.

Personal income tax laws are greatly different between Canada and the United States. One of the primary differences is the U.S. tax laws are based on citizenship, while Canadian income tax laws are based on residency. If an individual is a full-time permanent resident of Canada, then he will be taxed on his worldwide income in Canada. Regardless whether the person’s citizenship is U.S. or some foreign nationality, they are taxable in Canada. If a Canadian citizen at some point leaves Canada and moves to the U.S. and severs all ties with Canada, that citizen is no longer a resident of Canada and not subject to Canadian income tax laws.

On the other hand, U.S. citizens have an ongoing obligation to report and declare their worldwide income to their motherland, regardless of where they reside. U.S. citizens who have permanently departed the U.S.A. and have become full-time residents of Canada are still required to file their U.S. income taxes on an annual basis with the Internal Revenue Service (IRS).

Becoming experts in US-Canada Tax preparation will most likely be achieved through a Canada-US Tax Accountant who can give you an overview of your circumstance. It is a good advantage to use the US-Canada Income tax treaty to reduce double taxation. If not for the treaty, Canadians would pay their U.S. tax on their income derived from U.S.A. to the IRS and pay again to the Canadian Revenue Agency. Same goes with U.S. citizens.

Individuals require help from AP Tax, to give them helpful assistance with all their tax preparation compliance needs. Services of AP Tax are confidential, affordable and in compliance withthe accounting industry standards and all applicable laws and regulations. AP Tax is also an expert in tax planning and preparation for individuals or entities that need to file in both US and Canada.