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Income taxes issues Europe vs Canada
Thread poster: avsie

avsie  Identity Verified
Local time: 01:03
English to French
+ ...
Nov 5, 2004

Hello all,

I'm a very "débutante" in the world of freelancing, and I'm discovering the mazes of income taxation...

Short presentation: I'm Canadian in origin, I still have an active bank account in my hometown, which I use for some money transfers and to finish paying up my debts (grrr)... I'm a resident of the Netherlands and I have a permanent in-house position there.

So!

To earn extra euros/dollars, I've accepted a few translation jobs here and there. One agency being based in Spain, and the other in Canada.

Most of my "extra" revenus originates from the Canadian agency, and I feel the need to declare it (although it would be much nicer to just keep it all for me )

But to who must I declare it? Canada? Netherlands? There is a income tax convention between Canada and the Netherlands, where revenues made in one country aren't taxable by the other. But what about the case of freelancing?

I'm considered being a non-resident of Canada, and since I earned no "canadian" revenues for the last 3 years, I haven't filled any tax declaration forms these last 3 years.

Any ideas what I should do?

I will most like call the International income tax office of the Canadian government to see what I should do, but it might have happened to someone...


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xxxPRen  Identity Verified
Local time: 19:03
French to English
+ ...
Some suggestions Nov 5, 2004

Hi Marie-Claude,

First, I would check out the CCRA website for information on non-residents at:

http://www.cra-arc.gc.ca/tax/nonresidents/individuals/nonres-e.html

Second, I would think that you would pay tax in the Netherlands, on any jobs done for any clients, regardless of origin, given that that is your place of residence.

Just thinking out loud.

Paula


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avsie  Identity Verified
Local time: 01:03
English to French
+ ...
TOPIC STARTER
Thanks Paula! Nov 5, 2004

Yes, I have checked that website this afternoon, but I didn't really find what I was looking for.

Actually, after I posted, I've found the answer to my question

It lied in the "Convention Between Canada and the Kingdom of the
Netherlands" http://www.fin.gc.ca/treaties/Netherlands_e.html

Article 14
Independent Personal Services
1. Income derived by a resident of one of the States in respect of
professional services or other activities of an independent character shall
be taxable only in that State unless he has a fixed base regularly available
to him in the other State for the purpose of performing his activities. If
he has or had such a fixed base, the income may be taxed in the other State
but only so much of it as is attributable to that fixed base.

2. The term "professional services" includes especially independent
scientific, literary, artistic, educational or teaching activities as well
as the independent activities of physicians, lawyers, engineers, architects,
dentists and accountants


So yes, I should pay Dutch taxes over this Canadian income

I'll consult my Dutch accountant (my husband ) to see the correct procedure When I asked him the question this morning, he couldn't really answer (as he didn't know the Convention) but now I'm sure I'll find my way through the maze

Thanks again for your help!


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