US Domestic Brokerage by CDN Company


Site Supporter
I am exploring an opportunity to move US Domestic freight with all billing and payables done through our Ontario office. I am curious if there are other Brokers moving US Domestic Freight and how you are setup with the IRS. It appears this may subject us to double taxation?


In the trucking business we pay certain Foreign Corporation taxes in addition to state fuel tax. I am curious do brokers that generate profit on shipments traveling through the USA pay taxes to the IRS on the USA portion of profit? or is there some sort of excemption?


US-CDN or CDN-US as a Canadian we are not taxed.

Only income tax at the end of the year.


Site Supporter
Truckit, I believe that Canada and the US have various tax treaties in place to aviod a double taxation scenario. My firm does a very small amount of intra US freight brokerage and as a result, we have so far not explored what our obligations to the IRS are. Risky yes, but the revenue generated from this business does get reported to Revenue Canada so tax is being paid. As far as reporting revenue on the US portion of a international freight movement to the IRS, the answer is no. To the best of my knowledge, there is no US requirement for a foreign corporation to report this type of revenue. I would assume if there was, they could easily determine who these parties were by checking for foreigh holders of MC Brokers #'s. I would be interested to hear what further information you learn regarding this matter.


Site Supporter
That's correct Pablo. I couldn't remember the form. All IRS forms can be easily downloaded from their website, including the W8ben.


Site Supporter
I am aware of the W-8BEN as I see this form frequently as a Carrier dealing with US companies.

Thank you all for your insight. I have a tax expert looking into this matter so I will offer any findings here.


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