Personal Finance

CRA Reporting Requirements for Payments to Virtual Freelancers outside Canada and US?

  • Last Updated:
  • Apr 1st, 2016 5:49 pm
[OP]
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May 29, 2004
74 posts

CRA Reporting Requirements for Payments to Virtual Freelancers outside Canada and US?

I have an interesting tax question out there for any small business accountants out there.

I am running an IT consulting company and have recently had to subcontract some work out. I used a US-based service, UpWork.com and hired an individual in Russia.
UpWork is the broker between my company and the freelancer. They charge my company Credit Card and pays the Freelancer. My question is, from a Revenue Canada/tax perspective, do I need to file any additional forms?

I know T4A, T4A-NR are required to be filed for services provided inside of Canada by subcontractors. However, when the service is provided outside of Canada are there any special filings? Or do I just record the amount paid to UpWork.com under my Consulting Fees tax line?

How are payments to virtual freelancers/subcontractors outside of Canada and US to be recorded on the books?
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