For US citizens residing in Canada and Canadian citizens looking to move and/or work abroad, comprehending and navigating cross-border tax policies can be a challenging, yet essential process. Particularly with the complexities associated with US tax regulations and the significant penalties for non-compliance, it is imperative to strategically and proactively manage both corporate and personal taxation requirements to prevent outsized tax liabilities or double taxation and avoid costly penalty fees.
At Prasad & Company LLP, we are cross-border tax consultants to a range of clients, from people looking to move to or from Canada, to investors deploying capital abroad, to entrepreneurs seeking to expand their business into the US.
As specialists in this area, our cross-border tax services encompass the following verticals:
We help clients file their taxes in the US, including the preparation of the Form 1040 individual income tax return and supporting schedules. We also assist in filing Canadian income tax returns and helping clients realize the full benefits of the US-Canada Income Tax Convention.
In Canada, income tax obligations are determined by residency status. If you are a non-resident of Canada, you are therefore required only to pay tax on income earned within Canada. This encompasses the Part XIII tax (including dividends, rental payments, pension payments, CPP/QPP benefits, and annuity payments) and Part I tax (employment income or income from a business).
Our team assists Canadian clients working in the US with determining their residency status and other cross-border income tax filing requirements. To this end, we prepare US Federal and State income tax returns and Canadian income tax returns to ensure that taxation requirements across both borders are met effectively.
We also provide services for non-resident tax compliance and planning for non-resident individuals and/or corporations doing business in Canada to support growth plans and ensure that intricate tax laws are adhered to in both countries.
We have also worked with international clients to prepare corporate tax returns. For Canadian corporations with a business presence in the USA, we assist in preparing the US 1120 US Corporation Income Tax Return, supporting schedules, and the Canadian Income Tax Return. Clients also entrust us to avoid double taxation and realize the full benefits of the US-Canada Income Tax Convention.
In addition to the USA, we also offer comprehensive capabilities to service cross-border business relationships in the UK, India, Costa Rica, and several other countries through our strategic membership within the Alliott Global Alliance.
For Canadian clients looking to enter the US or Indian market soon, we offer a full range of tax planning and assistance to set up the entity optimally.
Whether the entity needs to be structured as a foreign division of a Canadian company, incorporated as a US/Indian company, or formed as a Limited Liability Partnership, our expertise primes companies to start conducting their business quickly and seamlessly.
Having developed an exceptional track record of success with corporations and individuals with cross-border taxation needs, we can design robust tax solutions that align with our client's strategic priorities, conditions, and financial objectives. Our team is recognized for their subject matter expertise and comprehensive knowledge of cross-border tax planning, preparation, and compliance as seasoned experts.
We remain committed and ready to provide you with customized strategies that maximize your tax efficiency and enable you to stay compliant in evolving tax landscapes. To get started, connect with us today to discuss how we can assist you with your cross-border tax needs.