What is a T1134 Information Return Relating to Foreign Affiliates?
What is a T1134 Information Return Relating to Foreign Affiliates? March 24, 2022 Tax Question: What is a T1134 information return relating to controlled and
March 24, 2022
Canada is a large market that loves U.S. goods. The consumer base is over 33 million people. This equates to a market potential of 15% for your U.S. sales. Canada is also the least expensive country to export from the USA because of its close proximity. Nearly 80% of Canadians are located within 60 miles of the U.S.-Canada border.
First, you will need to become a Non-resident Importer (commonly referred to as an NRI) – meaning that although you will not have a physical presence in Canada such as a residence or storefront, you will perform the role of the importer to make it easier for your potential customers to purchase your goods online.
We recommend that you contact Pacific Customs Brokers. Also, you need to obtain a Business Number and most importantly a Goods and Services Tax Number (which is a sub number of the Business Number). We help you with that part.
As the non-resident selling into Canada, you will collect sales taxes from your Canadian customers and remit them to the federal and provincial authorities. We help you get set up with those systems and train you to do them in your accounting team after we have guided you through the first few returns.
You will need to register for doing business in Canada, which primarily means getting a federal business number but can also mean getting provincial sales tax numbers and other related registrations such as income tax and payroll tax if you have staff in Canada.
Yes! With a little help from our friends, we can help you sort out sales taxes, income taxes, importing and customs, legal business structure, immigration and transportation moves from all over the world. Our tax experts can review where you are located and where you are selling to maximize the tax savings in the tax treaties available to you.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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