Question 1

Who owns the intellectual property created by a freelancer in Canada?

Accepted Answer

Under the Canadian Copyright Act, the freelancer (as the author) is the first owner of copyright in any original work they create. Unlike the US, Canada does not have a broad work-for-hire doctrine. To transfer ownership to the client, the contract must include an explicit written assignment of copyright. Without such an assignment, the client receives only an implied licence to use the work for its intended purpose.

Question 2

Does a Canadian freelancer need to charge GST/HST?

Accepted Answer

A freelancer must register for and charge GST/HST once their total worldwide taxable supplies exceed CAD $30,000 over four consecutive calendar quarters. Below this threshold, registration is optional but allows the freelancer to claim input tax credits. The GST rate is 5%, while HST rates vary by province (e.g., 13% in Ontario, 15% in Nova Scotia). The freelancer's GST/HST registration number must appear on all invoices.

Question 3

How is a freelancer distinguished from an employee under Canadian law?

Accepted Answer

The CRA uses a four-factor test outlined in guide RC4110: (1) degree of control over the work, (2) ownership of tools and equipment, (3) chance of profit or risk of loss, and (4) integration into the client's business. A genuine freelancer controls how and when the work is done, provides their own tools, bears financial risk, and operates as a separate business. Misclassification can result in liability for unpaid CPP, EI, and income tax.

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