How much would I pay in taxes in Quebec, Canada?
I currently live in the US and am considering a move to Montreal. I operate a home business, and all of my income is coming from US sources, but I hav...
I currently live in the US and am considering a move to Montreal. I operate a home business, and all of my income is coming from US sources, but I have been told that Canada taxes all worldwide income. Then it seems that the US would give me some sort of tax credit for what I paid to Canada.
I expect to make ,000 before deductions. Does Canada have a similar system as far as self-employment taxes? Do they have a self-employment tax?
What abouts would I have to pay for tax, including federal and provincial?
If you move to Canada and operate a home business, that is CANADIAN-source income, regardless of where your client resides.
Only if you are a US citizen would you continue to file and pay US taxes, and receive a Foreign Tax Credit on your CANADIAN return.
Yes, if you are a sole-proprietorship, you must pay CPP premiums yourself. This is equivalent to SE tax.
For estimates use the tax calculator here:
http://www.taxtips.ca/calculators/taxcalculator.htm
Much, much more info here:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slprtnr/menu-eng.html