Tax Planning for Digital Nomads in Vancouver

March 3, 2025 by Judi Wang

Tax Planning for Digital Nomads in Vancouver

As remote work becomes more common, digital nomads and freelancers must navigate complex tax regulations. If you live in Vancouver but work remotely, understanding your tax obligations is essential to avoid unexpected liabilities.

Freelancer working remotely on a laptop.

Do Digital Nomads Have to Pay Taxes in Canada?

Canada determines tax residency based on residential ties. If you live in Vancouver for 183 days or more per year, you are considered a tax resident and must file taxes accordingly.

Maintain records of travel dates and locations.
Report worldwide income if considered a Canadian tax resident.
Use available tax deductions to minimize tax liability.

Tax Deductions for Remote Workers

Freelancers and remote workers can take advantage of various tax deductions, including:

Home office expenses (rent, utilities, internet).
Work-related travel expenses.
Professional development and software subscriptions.

Our Tax Planning Services help ensure you maximize deductions and remain compliant.

Tax consultant discussing deductions with a freelancer.

Need Help with Tax Planning?

We specialize in helping digital nomads manage their taxes efficiently.

Schedule an Appointment

How to Reduce Your Tax Burden

To legally reduce taxes, digital nomads can:

Leverage tax treaties to avoid double taxation.
Track business-related expenses meticulously.
Use professional tax planning services for guidance.

Our Small Business Tax Deduction Guide provides strategies for tax efficiency.

Ensure Compliance & Maximize Savings

Understanding B.C.’s Minimum Wage Requirements

March 3, 2025 by Judi Wang

As of June 1, 2024, the minimum wage in British Columbia is $17.40 per hour. On June 1, 2025, this will increase to $17.85 per hour. Understanding how this applies to businesses and employees is crucial for compliance and proper financial planning.

Business owner reviewing minimum wage laws.

Who Does the Minimum Wage Apply To?

The hourly minimum wage applies to most employees regardless of how they are paid, including:

Hourly workers
Salary-based employees
Commission-based workers
Employees paid on an incentive basis

Employers must ensure that the total earnings for each pay period meet or exceed the minimum wage based on hours worked.

What If an Employee’s Wage Falls Below Minimum Wage?

If an employee’s calculated earnings fall below minimum wage for the hours worked, the employer is legally required to top up their pay so that they receive at least the minimum hourly rate.

Ensuring payroll compliance is essential for businesses. Our Bookkeeping Services can help you maintain accurate payroll records.

Payroll specialist adjusting employee wages.

Need Help Managing Payroll?

Ensure your business is compliant with payroll and wage laws. Get expert advice today.

Schedule an Appointment

HR professional explaining wage regulations.

How Businesses Can Stay Compliant

To avoid penalties and legal issues, businesses should:

Track employee hours accurately
Regularly review wages to ensure compliance
Provide clear payroll documentation
Update payroll systems before wage changes take effect

Our Business Accounting Services ensure that your company remains financially compliant.

Ensure Compliance with Wage Laws

Understanding the BC Home Flipping Tax: What You Need to Know

January 15, 2025 by Judi Wang

Understanding the BC Home Flipping Tax

Starting January 1, 2025, British Columbia’s new Residential Property (Short-Term Holding) Profit Tax Act introduces a home flipping tax. This tax applies to profits earned from selling properties owned for less than 730 days. Whether you’re a homeowner, investor, or developer, understanding the tax implications is crucial for financial planning and compliance.

What Is the BC Home Flipping Tax?

A real estate agent showing property sale documents to a client.

The BC home flipping tax applies to profits earned from selling properties, including presale contracts, that have been owned for less than 730 days. It is designed to discourage short-term property flipping and stabilize the housing market. The tax applies to properties sold on or after January 1, 2025, even if they were purchased before the effective date.

Are There Any Exemptions?

The BC government provides certain exemptions to this tax, including:

Death or Disability: If the sale occurs due to the property owner’s death or a significant disability.
Separation or Divorce: Sales related to marital breakdowns may qualify for exemptions.
Employment Relocation: If you are required to relocate for work beyond a specified distance.

For detailed guidance on exemptions and how they apply, consult our Tax Planning Services to ensure compliance and minimize your tax liabilities.

A CPA explaining tax exemptions to a property owner.

How to Calculate the Tax?

A digital dashboard showing property tax calculations.

The tax is based on the profit earned from the property sale. This includes the difference between the purchase price and the selling price, minus allowable expenses like renovation costs.

Important Considerations:

Accurate record-keeping is essential for claiming deductions.
Consulting professionals can help ensure you report profits correctly and identify potential tax-saving opportunities.

Our Bookkeeping Services can help you organize financial records to make the tax calculation process smoother.

The BC home flipping tax is a significant change for property owners and investors in British Columbia. Understanding how this tax works and planning ahead can help you make informed financial decisions. For personalized assistance with tax planning, bookkeeping, or accounting, reach out to Judi Wang, CPA. Schedule an Appointment today or Contact Us for more information.