US and Cross-Border Tax

Whether you’re a Canadian company with US business activities, a US business operating in Canada, or an individual, expatriate, or investor with interests in both countries, Fuller Landau can advise and help you manage the complexities of cross-border taxation.

Ongoing free trade negotiations prove the economies of Canada and the United States are essentially interconnected. Outsized nearly 10 to 1 in population, Canadian business needs to participate in the US marketplace to achieve critical volumes. And while less dependent, US companies look to Canada for financial and natural resources, innovation, and a highly-skilled labour pool.

Stakeholders mistakenly assume our shared border, language, and cultures translate into similar tax systems with any dissimilarities mitigated by the US Canada Tax Treaty. Such assumptions couldn’t be farther from the truth. Whereas Canadian federal and provincial taxes are generally integrated with one another, the US has one set of Federal tax laws (i.e., the Internal Revenue Code) and no national VAT tax (aside from specific federal excise taxes). State income tax laws often apply Federal tax principles, but each state is free to make its own modifications and is not required to follow the Treaty. And state sales taxation is not harmonized at the federal level or among the states. Thousands of localities impose their own tax rules, from income taxes to sales taxes.

Cautious stakeholders contemplate cross-border tax in their business plans from choice of entity and domicile to business registration and tax compliance. And for the aggressive entrepreneur who didn’t consider these things, remedial steps may mitigate tax and penalty exposures including voluntary disclosure.

Fuller Landau’s professionals can assist on both sides of the border, from advising on the optimal jurisdiction and type of entity, to registration with the Canada Revenue Agency, the Internal Revenue Service, and each state and localities where needed. We prepare Canadian and US federal and state tax returns. We work with Canadian and US attorneys.

For more information, contact us today or meet our experts below.

Get In Touch

Please take a few moments to fill out the contact form, below, and let us know how we can help. We look forward to hearing from you!

Did You Know…

  • Fuller Landau’s US and Cross-Border Tax team is lead by partner Jeffrey Brown? He’s a former CFO from New York City with deep-rooted expertise in all matters pertaining to cross-border taxation.
  • Only about half of the US states apply the US Canada Income Tax Treaty to their income tax regimes, and the Treaty doesn’t apply to sales tax? Our team of experts is well-informed and ready to advise you, as needed.
  • Fuller Landau is an active member of Leading Edge Alliance? LEA is an international association of accounting, tax, and consulting firms, providing our clients with access to a global network of advisors.

'US and Cross-Border Tax' Recent Posts

Treaty-Shmeaty, Not Quite!

Jeffrey Brown • December 20, 2018

Many Canadian companies, and their tax advisors, operate under the mistaken belief that the US Canada Tax Treaty protects them from ALL cross-border taxation in the US. This couldn’t be farther from the truth. The Treaty protects a Canadian company from US federal income taxation on its US trade or business income so long as

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USA: Double taxation. Canada

Tax Trap for US Green Card Holders “Resident” in Canada with US Investment Income

Jeffrey Brown • November 19, 2018

The United States considers US Green Card holders to be US residents for tax purposes. Green card holders file tax returns and pay US tax on their worldwide income as do US citizens, even if they live in Canada. Canada generally considers those who permanently reside in Canada to be Canadian residents for Canadian tax

... Read More
Canadian Cross-Border Tax

Tax Me If You Can: Remaining in Compliance with the Canadian Cross-Border Tax

Jeffrey Brown • November 09, 2018

In the shadow of the recent Wayfair decision, more and more Canadian remote sellers now have to deal with state and local sales tax collection responsibilities. All too many are still thinking they can play the catch me if you can game, erroneously citing the US Canada Tax Treaty or assuming the states can’t or

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