Canadian COVID-19 Guidelines – Cross-Border Workers

January 11, 2022
COVID-19 travel restrictions for cross-border workers

On December 29, 2021, Canada Revenue Agency (“CRA”) updated its guidance with Part VII – Supplemental Guidance (1) which extends administrative relief for Canadian resident cross-border workers in respect of their 2021 income tax obligations.  Individuals concerned about their potential income tax issues because of travel restrictions caused by the Covid-19 pandemic continue to obtain relief from unintentionally becoming a Canadian tax resident and potentially creating a permanent establishment for their non-Canadian employer. 

This administrative relief also provides an alternative method for individuals to calculate their US and Canadian tax liabilities.  As we discussed previously, this alternative method may result in a significant tax win for individuals for both the 2020 and 2021 years (2). 

If you are a cross-border commuter impacted by the COVID-19 travel restrictions in 2020 or 2021, please contact us to determine your best tax strategy.

(1) International income tax issues – Canada.ca

(2) Canadian COVID-19 Guidelines – International Tax

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