Impact of working with H1b on Canada PR

Hi
I have one question if someone can please guide me.
I have 5+ years of experience as a Software Developer & went to Canada in January 2022 for Masters so I have study permit status in Canada at the moment. My Masters will be finished in April 2023.
Now I got picked up in H1B lottery as well and If I take up a remote job in US while completing my Masters will that impact my postgraduation work permit or PR in Canada?

Your question has many different considerations which I would like to list below.

  1. You need to consult your school’s international student advisor to clearly understand the requirement to be in compliance with your study permit and whether working is allowed while being on study permit. Some abstract can be found below.
  1. Also there is a need to understand what is not consider ‘Work’ while you are present in Canada on temporary basis. So let’s say you are not allowed to work as a part of study permit condition, however will remote work for a non-canadian employer qualify as ‘work’ per Canadian laws? Some information can be found below.
  1. Another aspect is where will be your remote work salary paid, US, Canada or India bank account? If in Canada, then there could be tax implications and you might have to pay taxes in Canada or at least file a tax return under double tax avoidance agreement (tax treaty) if you are also filing taxes in India.
    This could be complicated and will need a consultation with a tax lawyer/CA/CPA.

  2. H1B status and the related immigration laws only apply to people working in the US for H1B employer. In other words, even if you are a H1B holder, you aren’t considered to be in H1B status while you are outside of the US or work for a US H1B employer remotely. The US immigration laws do not extend beyond the US territorial boundary.

So here is my take on your situation.
a) If the US employer wants you to start working remotely from 1st Oct’22, the date when H1B starts, you need to ask where will they run the payroll, US, Canada or India based on whether the company has presence in Canada and/or India.

You can only start working if you are not breaking any of the laws for Canada study permit.

b) If you will receive salary in Canada bank account, talk to a tax consultant in Canada to know your tax obligations.

As far as the Canadian PR is concerned, being on H1B do will not create any issues however just make sure you do not violate any Canadian laws while trying to work remotely as that may cause issues with Canadian PR later on during the process.

Lastly, talk to your school to find out if they allow you to complete the degree online so that you can simply move to US after 1st October, start the H1B job and complete your degree online.