Difference between the tax system in US and Canada

The US and Canada may both have Federalism outlined as their constitutional structure. However, it obviously doesn’t mean they have the exact same tax system. For those businesses crossing the borders of US and Canada, it’s a must to be familiar with the tax system, probably with the help of a Cross Border Tax Specialist for both countries to avoid getting taxed higher than expected, or worse, getting double taxed. For several years now, the US has rejected the value added tax (VAT) and has been imposing on sales tax where the percentage may vary on most states, thus an income tax on the national level. Businesses aren’t taxed on income but...

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Rules and Restriction With Our Taxes

The US-Canada Tax Convention signed in 1980 or more commonly called as the Tax Treaty covers the foreign tax credits where individuals are protected from double taxation. Cross border tax services are essential in providing the guidelines for the rules and regulations of cross-border taxes. Let’s assume we have, Savers, a Canadian manufacturer, who wants to test the US market and sent down a sales representative. The tax rules and regulations are as follows: Subject to federal US tax. The Internal Revenue Code (IRC) enforces universal corporate income tax on a foreign corporation which is “engaged in trade or business” within the US Trade....

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How to Identify Your Tax Filing Status

Without knowing the right tax filing status, you could end up paying more tax than you should or worse, you could end up filing for a wrong one. Selecting the right tax filing status can have a great impact on the tax benefits that you receive; the amount of taxes that you pay or the amount of your standard deduction. Currently, there are five filing statuses for you to choose from. Most people can claim a filing status erroneously but in good faith. The filing status that is mostly filed in error is the “Head of Household” status. In choosing the right filing status, firms such as AP Tax Group advice that you consider the following: Marital status. In considering the marital status, one must realize that the status of the person on the last day+ of the year represents his or her status...

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How a Cross Border Tax Specialist can deal with your Cross Border Tax Services

Let's admit it, nobody enjoys filing taxes. From the stressful process that, if given a decision, most businesses and people would like to delegate it to skilled person who have more experience using its intricacies - an expert or a specialist, as they say - which is particularly true as it pertains to cross border tax services between the US and Canada. Listed below are four ways what sort of Cross Border Tax Specialist will let you with Cross Border Tax Services: Provide you with essential expertise. Cross Border Tax is complex and it could be very daunting to a person who is not really acquainted with the myriad laws applicable for...

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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...

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All About Taxes

The United States and Canada have a close monetary and cultural ties due to proximity. It isn't surprising that citizens from both countries proceed to each other's country to get, study, conduct business, work or even to retire. Both national countries, the U.S. and Canada, have very unique system in taxation. Thus, they decided on the US-Canada Duty Convention authorized in 1980 or even more commonly called as the Taxes Treaty. Filing US Taxes From Canada The Duty Treaty addresses the foreign taxes credits which can be purchased in situations where each country claims the right to taxes the same income. Cross-border taxes Canada-US,...

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