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Virtual International Tax Services — US-Canada Cross-Border
Licensed Toronto CPAs handle US-Canada cross-border tax, non-resident returns, departure tax, treaty planning and international tax structuring — 100% virtually for individuals and businesses across Ontario and Canada.
International tax services are available in-person at our Toronto office and virtually to businesses and individuals across Ontario, Canada and internationally.
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AFFORDABLE Virtual International Tax — US-Canada Cross-Border, Non-Resident & Departure Tax
At Gondaliya CPA, we handle the full spectrum of international and cross-border tax for Ontario residents, Canadian businesses with US operations, non-residents earning Canadian income and individuals leaving or entering Canada — all delivered virtually.
Cross-border tax is one of the most complex areas of Canadian tax law. Getting it wrong creates double taxation, CRA penalties, IRS filing failures and treaty violations. Our licensed CPA team handles every international tax obligation correctly — virtually, from anywhere in the world.
- US-Canada cross-border tax planning and structuring
- Non-resident Canadian tax returns (T1 and T2)
- Departure tax returns for individuals leaving Canada
- Section 216 non-resident rental income returns
- NR4, NR6 and withholding tax compliance
- US business tax filing for Canadian corporations
- Canada-US Tax Treaty application and planning
- International tax structuring for cross-border businesses
How Virtual International Tax Works
1
Free Consultation Call
We review your cross-border situation — residency status, income sources, treaty position and filing obligations on both sides — and confirm an exact flat fee.
2
Secure Document Upload
Upload your Canadian and US tax documents, income slips, NR4s and prior returns through our secure TaxDome portal — from anywhere in the world.
3
We Prepare All Filings
Our CPA team prepares all required Canadian filings — T1, T2, NR4, NR6, Section 216, departure return or treaty-based positions as applicable.
4
Review, Approve and File
You review and approve online. We file with CRA and handle all correspondence — no office visit required from anywhere in Canada or internationally.
Virtual International Tax Services We Provide
Every cross-border and international tax service handled by a licensed CPA team — virtually, accurately and fully compliant with both CRA and IRS requirements.
US Business Tax Filing
US federal and state tax compliance for Canadian corporations operating in the US — Form 1120, 1120-F, 5471 and related filings handled virtually.
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Canada-US Cross-Border Tax Planning
Proactive structuring to eliminate double taxation, apply treaty benefits correctly and optimise the combined Canadian and US tax burden for businesses and individuals.
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International Tax Planning & Structuring
Tax-efficient international structures for businesses operating across multiple jurisdictions — holding company design, transfer pricing considerations and treaty network planning.
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Non-Resident Corporation in Canada
T2 filing obligations, branch tax, Part XIII withholding and Regulation 105 compliance for non-resident corporations carrying on business in Canada.
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Non-Resident Tax Returns
Section 217 elective returns and Part I or Part XIII tax returns for non-residents earning Canadian-source income — employment, pension, dividends and more.
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Section 216 Rental Income Returns
Non-resident rental income Section 216 election returns — reducing withholding tax on gross rent to tax on net rental income for non-resident property owners in Canada.
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NR4, NR6 & Withholding Tax Compliance
NR4 slip preparation and filing, NR6 undertaking applications to reduce withholding on rental income, and Part XIII withholding tax remittance for Canadian payers.
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Departure Tax Returns
Canadian departure tax return preparation for individuals emigrating from Canada — deemed disposition rules, treaty tie-breaker positions and Section 217 elections where applicable.
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Canadian vs. US Tax Obligations — What We Handle on Each Side
Cross-border tax requires compliance on both sides of the border. We manage your Canadian obligations and coordinate with US tax professionals where needed.
🇨🇦 Canadian Tax Obligations — We Handle Directly
CRA Filings We Manage
- T1 personal tax returns (residents and non-residents)
- T2 corporate tax returns (Canadian and foreign corporations)
- Departure tax returns (T1 with Section 128.1)
- Section 216 non-resident rental income elections
- Section 217 elective returns for pension and other income
- NR4 information slips for Canadian payers
- NR6 undertaking applications
- Part XIII withholding tax remittances
- Foreign Asset Reporting (T1135)
- Foreign Affiliate Reporting (T1134)
- GST/HST compliance for non-residents
- CRA audit representation and objections
🇺🇸 US Tax Obligations — We Coordinate and Advise
US Filing Situations We Advise On
- Form 1120-F (US income tax for foreign corporations)
- Form 5471 (information return for controlled foreign corps)
- FIRPTA withholding on US real estate sales
- Treaty-based positions (Form 8833)
- US permanent establishment analysis
- State nexus and state tax filing obligations
- ITIN application for Canadians with US income
- EIN registration for Canadian corporations in the US
- Social Security totalization agreement planning
- US LLC structure for Canadian business owners
The Canada-US Tax Treaty — How It Protects You
The Canada-United States Tax Convention reduces or eliminates double taxation for individuals and businesses earning income on both sides of the border.
Key Treaty Provisions We Apply for Clients
The Canada-US Tax Treaty has been in force since 1980 and contains specific provisions that reduce withholding taxes, eliminate double taxation, establish tiebreaker rules for dual residents, and define when a business creates a taxable presence in the other country. Correctly applying treaty provisions requires deep knowledge of both Canadian and US tax law — and when to file Form 8833 (treaty-based return position disclosure) with the IRS.
Withholding Rate Reductions
Dividends reduced from 25% to 5-15%. Interest reduced to 0%. Royalties reduced to 0-10% depending on type.
Permanent Establishment Rules
Defines when a Canadian business creates US tax exposure and when a US business creates Canadian tax exposure.
Tie-Breaker Rules
Determines tax residency for individuals with ties to both countries — prevents double taxation of worldwide income.
Pension and RRSP Provisions
Canadians with US income can defer RRSP taxation in the US. US citizens in Canada receive treaty protection on 401(k) and IRA balances.
Capital Gains Provisions
Specific rules for gains on US real property, shares of corporations whose assets are primarily Canadian real property, and departure from Canada.
Mutual Agreement Procedure
If both Canada and the US are taxing the same income, the MAP allows taxpayers to request relief through the competent authorities of both countries.
Who We Help with Cross-Border & International Tax
Common cross-border situations we handle virtually for Ontario individuals and businesses.
Situation 1
Canadian Business Selling to US Customers
An Ontario corporation earning revenue from US clients needs to understand if it has created US nexus or a permanent establishment — and whether it owes US federal or state tax. We assess your exposure and structure to avoid unintended US tax obligations.
Situation 2
Canadian Leaving for the US
A professional relocating from Ontario to the US must file a departure tax return with CRA, potentially pay tax on deemed dispositions of worldwide assets, and understand their last year of Canadian tax residency. We handle the full departure filing and treaty planning.
Situation 3
Non-Resident Owning Canadian Rental Property
A non-resident receiving rent from Canadian property is subject to 25% Part XIII withholding on gross rent unless an NR6 undertaking is filed. We file the NR6, manage withholding and prepare the Section 216 return to recover excess tax paid.
Situation 4
US Citizen Living and Working in Canada
US citizens are taxed on worldwide income regardless of where they live. A US citizen in Ontario must file both a Canadian T1 and a US Form 1040 annually. We coordinate both filings and apply foreign tax credits and treaty provisions to eliminate double taxation.
Situation 5
Canadian with US Investment Accounts
A Canadian resident holding US brokerage accounts, ETFs or real estate must report foreign assets on T1135, report foreign income and understand the PFIC rules that apply to many US-listed ETFs. We handle foreign asset reporting and cross-border investment tax planning.
Situation 6
Ontario Corporation Setting Up US Subsidiary
A Toronto-based corporation expanding to the US needs to decide between a US C-Corp, LLC or branch — each with different Canadian and US tax implications. We advise on the optimal structure, intercompany pricing and repatriation of profits back to Canada.
Why Ontario Clients Choose Gondaliya CPA for International Tax
Cross-border tax is high-stakes. Getting it wrong costs far more than the fee to get it right.
AFFORDABLE Flat-Fee Pricing
Flat-fee pricing on all international tax engagements — no hourly billing, no surprise invoices. You know the exact cost before we start. Fees-Matching available.
Both Sides of the Border
We understand Canadian tax law deeply and coordinate US obligations — so you are never left trying to explain your Canadian situation to a US accountant unfamiliar with CRA rules.
Secure Virtual Portal
All cross-border documents — NR4s, foreign income slips, treaty election forms — shared through encrypted TaxDome portal. Accessible from anywhere in the world.
Evenings & Weekends to 9 PM
Available evenings and weekends to 9 PM — essential for clients in different time zones or business owners who cannot take calls during Canadian business hours.
Key International & Cross-Border Tax Deadlines
Missing these deadlines results in CRA penalties and potential double taxation. We track and manage all deadlines for you.
| Filing / Obligation | Deadline | Penalty for Missing | We Handle? |
|---|---|---|---|
| T1 Departure Return | April 30 of year following departure | 5% of balance + 1%/month | ✓ Yes |
| NR6 Undertaking Application | Before first rental payment of the year | 25% withholding on gross rent applies | ✓ Yes |
| Section 216 Return | June 30 of following year | Loss of Section 216 election benefits | ✓ Yes |
| Part XIII Withholding Remittance | 15th of month after payment | 10% penalty on remittance amount | ✓ Yes |
| T1135 Foreign Asset Reporting | Same as T1 / T2 filing deadline | Up to $2,500 per year + criminal penalties | ✓ Yes |
| T1134 Foreign Affiliate Reporting | 10 months after fiscal year end | Up to $2,500 per month late | ✓ Yes |
| Non-Resident T2 Return | 6 months after fiscal year end | 5% of balance + 1%/month | ✓ Yes |
Virtual International Tax — Ontario & Canada-Wide
We serve clients across every Ontario city and Canada-wide — and internationally for non-residents with Canadian tax obligations.
Frequently Asked Questions
Common questions from Ontario clients about US-Canada cross-border and international tax.
Do I owe Canadian tax if I live in the US but own property in Canada?
Yes. Non-residents of Canada who earn rental income from Canadian property are subject to Part XIII withholding tax of 25% on gross rent, unless an NR6 undertaking is filed with CRA before the first rental payment of the year. Filing a Section 216 return allows you to pay tax on net rental income at graduated rates rather than 25% on gross, often resulting in a significant refund. We handle the NR6, withholding management and Section 216 return entirely virtually.
What is a departure tax return and when do I need to file one?
When you leave Canada and become a non-resident, you are deemed to have disposed of most of your worldwide assets at fair market value on the date of departure. This triggers capital gains tax on unrealised gains, known as departure tax. You must file a special T1 departure return for the year you leave Canada. Proper planning before departure can significantly reduce the departure tax owing. We prepare departure returns entirely virtually for clients leaving for the US or any other country.
Does my Ontario corporation owe US tax if it has US customers?
Not automatically. Under the Canada-US Tax Treaty, a Canadian corporation only owes US federal income tax if it has a permanent establishment in the US, such as a fixed office, warehouse, employee or dependent agent. Simply selling to US customers over the internet or shipping goods to US buyers generally does not create a permanent establishment. However, state-level tax obligations under nexus rules can apply at lower thresholds. We assess your specific situation and advise on US exposure during the consultation.
I am a US citizen living in Ontario. Do I still need to file US taxes?
Yes. The United States taxes its citizens on worldwide income regardless of where they live. As a US citizen resident in Canada, you must file both a Canadian T1 return and a US Form 1040 annually. The Canada-US Tax Treaty and the US foreign tax credit eliminate most double taxation, but compliance is required on both sides. We prepare the Canadian T1 and coordinate the US 1040 filing, ensuring treaty positions are applied correctly and no income is taxed twice.
What is the T1135 Foreign Asset Reporting and does it apply to me?
The T1135 Foreign Income Verification Statement must be filed by any Canadian resident who owns foreign property with a total cost exceeding CAD $100,000 at any point during the year. Foreign property includes foreign bank accounts, US brokerage accounts, foreign real estate that is not personal use, shares in foreign corporations and interests in foreign trusts. Penalties for failing to file are up to $2,500 per year, and wilful non-compliance can result in criminal penalties. We include T1135 preparation as part of cross-border tax engagements.
What is withholding tax in Canada and who has to remit it?
When a Canadian resident pays certain amounts to a non-resident, such as rent, dividends, interest, royalties or management fees, they are required to withhold Part XIII tax, typically 25% and reduced by treaty, and remit it to CRA by the 15th of the following month. Failure to withhold or remit results in a 10% penalty on the withholding amount. The Canadian payer is responsible, not the non-resident recipient. We manage NR4 preparation, withholding calculations and remittance schedules for Canadian payers entirely virtually.
Can you handle both my Canadian and US tax filings?
We handle all Canadian filings directly, including T1, T2, NR4, NR6, Section 216, T1135, T1134, departure returns and all CRA correspondence. For US filings, we advise on the required forms, apply treaty positions correctly and coordinate with a US-licensed tax professional where a US return signature is required. This ensures both your Canadian and US filings are consistent, treaty-compliant and do not result in double taxation. Please book a consultation so we can map your exact obligations.
How do I share sensitive international tax documents with you virtually?
All documents are shared through our encrypted TaxDome client portal, accessible from anywhere in the world and from any device. Foreign income slips, NR4s, US W-2s, brokerage statements and prior returns are uploaded directly and securely. No documents need to be mailed or physically delivered at any point in the engagement, which is why our service works equally well for clients across Ontario and for non-residents abroad.
How is my tax residency in Canada determined?
Canadian tax residency is based on the facts of your situation, not just the number of days you spend here. CRA weighs primary ties such as a home in Canada, a spouse or common-law partner and dependants, along with secondary ties such as a driver's licence, bank accounts and health coverage. If you also have ties to the US, the Canada-US Tax Treaty tie-breaker rules decide a single country of residence. We review your ties and confirm your residency position before any filing.
What is the difference between a Section 216 and a Section 217 return?
A Section 216 return applies to a non-resident earning Canadian rental income and lets you pay tax on net rental income at graduated rates instead of 25% withholding on gross rent. A Section 217 return applies to a non-resident receiving certain Canadian-source income such as pensions or benefits, and lets you elect to be taxed as if resident, which can reduce the flat withholding. Both are elective. We determine which election, if any, saves you the most tax.
How does the foreign tax credit prevent double taxation?
The foreign tax credit lets you claim a credit on one country's return for income tax already paid to the other country on the same income. For a Canadian resident with US-source income, foreign tax paid to the IRS generally reduces the Canadian tax on that same income, and the Canada-US Tax Treaty coordinates which country taxes first. Applied correctly, the credit means the same dollar of income is not effectively taxed twice. We calculate and support the credit on your return.
What is a permanent establishment and why does it matter?
A permanent establishment is a fixed place of business, such as an office, branch, warehouse, or a dependent agent who habitually concludes contracts, through which a business is carried on in another country. Under the Canada-US Tax Treaty, a Canadian company generally only becomes taxable in the US if it has a US permanent establishment. Identifying whether one exists is central to cross-border planning, because it decides where profits are taxed. We assess your footprint before you expand.
Do I need to file a Canadian tax return as a non-resident?
It depends on the type of Canadian income you earn. Non-residents with Canadian employment income, business income from a Canadian permanent establishment, or taxable Canadian property dispositions generally must file a T1 return. Income such as rent, dividends or pensions is often handled through Part XIII withholding, but electing to file under Section 216 or 217 can reduce the tax. We confirm your filing requirement and prepare the correct return entirely virtually.
What are the tax implications of selling Canadian property as a non-resident?
A non-resident selling taxable Canadian property must notify CRA and obtain a clearance certificate under Section 116, and the purchaser must withhold a portion of the sale price until the certificate is issued. The gain is reported on a Canadian return and may also be reportable in your country of residence, with treaty relief applied. Missing the Section 116 process leads to over-withholding and delays. We manage the clearance certificate and the final return for you.
How are US retirement accounts like 401(k) and IRA taxed in Canada?
Under the Canada-US Tax Treaty, a Canadian resident can generally continue to defer tax on a 401(k) or IRA until amounts are withdrawn, rather than being taxed on the internal growth each year. When funds are withdrawn, they are taxable in Canada, with a foreign tax credit for US tax withheld. The rules for reporting and for any rollover are specific and easy to get wrong. Please review your accounts with us before making any withdrawal or transfer.
What is FIRPTA withholding on US real estate sales?
FIRPTA is a US withholding rule that applies when a foreign person, including a Canadian, sells US real property. The buyer is generally required to withhold a percentage of the gross sale price and remit it to the IRS, and the seller then files a US return to report the actual gain and recover any excess. The gain is also reported in Canada with treaty coordination. We advise on the US filing and coordinate the Canadian side so the sale is reported consistently.
Should my US business be an LLC, C-Corp or branch?
The right structure depends on liability, US and Canadian tax treatment and how you plan to move profits back to Canada. A US LLC is often problematic for Canadian owners because Canada and the US can treat it differently, creating mismatches and lost foreign tax credits. A C-Corp or a branch each carry their own consequences. Because this decision drives years of tax outcomes, please confirm the structure with us before you register anything in the US.
What is Regulation 105 withholding for non-resident service providers?
Regulation 105 requires a Canadian payer to withhold 15% from fees paid to a non-resident for services physically rendered in Canada. It is a withholding on account of the non-resident's potential Canadian tax, not a final tax. The non-resident can file a Canadian return to recover amounts above their actual liability, or apply in advance for a waiver where a treaty exemption applies. We handle both the payer's withholding obligation and the non-resident's recovery filing.
How does the Canada-US Tax Treaty reduce withholding on dividends and interest?
The treaty lowers the default Canadian and US withholding rates on cross-border payments. Dividends paid to a qualifying resident of the other country are generally reduced from 25% to 5% or 15% depending on ownership, interest is generally reduced to 0%, and royalties are reduced to between 0% and 10% depending on the type. Claiming these rates requires correct residency certification. We make sure the reduced treaty rate is applied and documented rather than the full statutory rate.
What is the T1134 Foreign Affiliate Reporting requirement?
A Canadian resident corporation, individual or trust that owns a foreign affiliate, generally a foreign corporation in which it holds a significant interest, must file a T1134 information return. It is due within ten months of the fiscal year-end and reports the affiliate's activities, income and surplus. Penalties for late or missed filing start at $2,500 and rise with continued non-compliance. We prepare T1134 filings as part of engagements for clients with foreign corporate holdings.
Can a non-resident own a Canadian corporation?
Yes, a non-resident can own shares of a Canadian corporation, but two points matter. First, some jurisdictions have Canadian resident director requirements, so the corporation may need a resident director. Second, a corporation controlled by non-residents is not a Canadian-Controlled Private Corporation, so it loses the small business rate and several CCPC-only benefits. We advise on the ownership structure, resident director needs and the tax consequences before you incorporate.
What is an ITIN and when do I need one as a Canadian?
An ITIN, or Individual Taxpayer Identification Number, is a US tax processing number for individuals who are not eligible for a US Social Security Number but have a US tax filing or reporting obligation. A Canadian may need one to file a US return, to claim treaty benefits on US income, or to complete the sale of US real estate. We advise on when an ITIN is required and coordinate the application alongside the related US filing.
How do I report US employment income on my Canadian tax return?
A Canadian resident is taxed on worldwide income, so US employment income is reported on your Canadian T1, converted to Canadian dollars. You then claim a foreign tax credit for US federal and state tax and for US Social Security and Medicare where applicable, so the same income is not taxed twice. The treaty and the totalization agreement affect how payroll taxes are treated. We prepare the Canadian return and reconcile it against your US filing.
What happens if I have not filed required foreign reporting forms?
If T1135, T1134 or other required forms were missed, the exposure grows the longer it is left, because penalties accrue and interest applies. CRA does offer a Voluntary Disclosures Program that, where you qualify and come forward before CRA contacts you, can reduce penalties and provide relief. Eligibility is specific and timing matters. Please speak with us promptly and confidentially so we can assess whether a voluntary disclosure is the right path for your situation.
Do Canadians pay US estate tax on US assets?
Potentially. The US imposes estate tax on US-situated assets held by non-residents, which can include US real estate and shares of US corporations, once they exceed a modest exemption for non-residents. The Canada-US Tax Treaty provides relief through a prorated credit based on the size of the worldwide estate. Because the interaction is complex and depends on total assets, please review your US holdings with us as part of any cross-border estate planning.
How are US-listed ETFs and the PFIC rules treated for Canadians?
For a Canadian resident, US-listed ETFs are reported for Canadian tax like other foreign investments, and their cost counts toward the T1135 threshold. The bigger issue arises for US persons in Canada, because many non-US pooled funds are treated as PFICs under US rules and carry punitive US tax and complex reporting. Choosing the right side of the border to hold funds avoids this. We advise on cross-border investment reporting and coordinate the US treatment where it applies.
What is the deemed disposition rule when leaving Canada?
When you cease Canadian residency, you are treated as having sold most of your property at fair market value on your departure date, which can trigger tax on accrued gains even though nothing was actually sold. Certain assets, such as Canadian real estate and registered plans, are excluded, and you can elect to defer the departure tax by posting security with CRA. Planning the timing and the elections before you leave can materially reduce the bill. We prepare the departure return and the elections.
Can you help if CRA is auditing my international tax filings?
Yes. We represent clients in CRA reviews and audits of cross-border matters, including residency determinations, foreign reporting, withholding and treaty positions. We respond to CRA queries, prepare the supporting analysis and file objections where an assessment is wrong. For our tax clients, CRA audit support on the returns we prepare is included at no extra charge. Please forward any CRA letter to us promptly so we can respond within the deadline stated on the notice.
What are the tax rules for Canadian snowbirds spending winters in the US?
Canadian snowbirds must watch the US Substantial Presence Test, which counts days in the US over a three-year weighted formula and can make you a US tax resident if you spend too long there. Filing the US closer connection statement, Form 8840, generally preserves your Canadian residency where you qualify. Getting this wrong can pull your worldwide income into the US system. We advise on day counting and prepare the closer connection filing so you stay onside.
How much do virtual international tax services cost?
Our international and cross-border engagements are priced on a flat-fee basis that includes HST, with the exact fee confirmed before any work begins, and no hourly billing. The fee depends on the filings involved, such as a departure return, a Section 216 return or foreign reporting forms, and we quote it after a free consultation. Under our 60-Day Fees-Matching Policy we match any lower written quote from a licensed CPA firm. Payment is by Interac e-Transfer to info@gondaliyacpa.ca. Know Your Exact Fee →
Related International & Cross-Border Tax Services
Every international and cross-border tax service available virtually for Ontario individuals and businesses.
Virtual US-Canada Cross-Border Tax — Licensed CPA, Flat-Fee, 100% Online
Cross-border tax compliance handled correctly from both sides of the border — virtually for Ontario individuals and businesses across Canada and internationally.
Licensed CPA Ontario
1300+ Five-Star Reviews
Flat-Fee Pricing
Canada + US Both Handled