The new CRA guidance, which was released April 1, 2021, provides details for certain cross-border employees on how to properly file their 2020 Canadian income tax filings. In addition, the CRA also extends its previous administrative relief for U.S. resident employees working in Canada, and for individuals who may otherwise meet Canada's individual residency test. While the CRA's past guidance on these issues generally expired on September 30, 2020, the new guidance extends certain aspects of the previous relief.
Note that, although the new guidance documents the CRA's views on certain permanent establishment issues, it does not extend the CRA's previous guidance for permanent establishments or corporate residency, which expired on September 30, 2020. Corporate taxpayers affected beyond this date should contact the CRA, according to the guidance.
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