[shankar5455]

Hi,

I am currently located and work for a software company in Toronto, Canada on a closed work permit. I am planning to travel to India (home country) to visit my family when the airlines are operational again which may be sometime in late August or early September this year. My company do not have offices or operations in India.

While I like to fly back to Toronto after 3 weeks, I am also concerned with issues like flight unavailability or new travel advisories that may delay my travel back to Canada. And I would like to know if affects my employment or pay in Canada. In case it gets delayed, I want to be aware of the below things:

a. How long can someone working for a Canadian employer on a work-permit, work outside of Canada?
b. What are the tax implications? Is it allowed to be paid by a Canadian company when the employee is working from India?
c. Are there are other things to consider if stuck in India and not be able to travel back for around 3 months?

Could someone help me with the above questions. Thank you!

 

[Nononymous]

(a) That's an immigration question, not a tax question.

(b) There are no tax implications. It is allowed. You would remain a tax resident of Canada. Not a problem.

(c) Health insurance?

 

[gardner]

As long as you maintain significant ties to Canada, you can remain an absentee resident for tax purposes indefinitely. Being paid, with taxes deducted at source in Canada, paid into a Canadian bank account with a home address in Canada that you maintain, would definitely do it.

Whether you might become a deemed resident for tax purposes in your temporary work country might be something to think about. If you have no local source of income, that shouldn't be a problem, but who knows what rules might be lurking.

 

[Ponderling]

mine was working for an Australian subsidiary to a Canadian business for 3.5 years from 99 to 03. I paid my share of cpp annually, and company in canada paid employer share the same way. When the contract finished, I was back at the same desk I left in Canada. Company paid my health insurance cost as though i was in Ontario; that was a clause I put in my deal when they wanted to mail me to Queensland. Vacation service time accrued too. I was delayed in becoming a partner in the firm for a few years, as senior partners beefed that it cost too much to send me to Australia.