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Hi Madan,
A quick question which I suspect I already know the answer to but thought it worth asking.
I worked under contract as a consultant (in Canada) for 6 years on a monthly retainer/salary paid by a Kuwait based and 100% Kuwaiti owned company - they were my sole client. All of my work was in regards to a Kuwait based project and, although I undertook the work in Canada at my home, all of the work product flowed back to Kuwait for use in Kuwait. I've reported 100% of my income in each of the 6 years to CRA but wonder now, based on the wording in the Canada-Kuwait tax treat around "where work is exercised", if some or all of that income could be construed as taking place in Kuwait and so subject to a different or lessor tax liability in Canada. I suspect not but just wanted to ask...
Thanks.
Thank you for your question. Since the work was performed from your home in Canada, it is treated as "Canadian sourced income" and is taxable in Canada only.