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This paper discusses the tax implications for highly skilled workers who move across borders. This paper uses Canada, the United States and China as case studies to demonstrate the extent to which barriers to labour mobility exist. It argues that cross-border tax and pension issues are not only important to the mobile workers, but also to their employers (especially in the case of intracompany transfers) and the government. Policy recommendations are made on how such barriers can be removed or reduced. These recommendations are guided by the principles of efficiency and equity, and are influenced by the global perspective that views international labour mobility as 'brain circulation' as opposed to 'brain drain' or 'brain gain'. Although the paper briefly discusses the pros and cons of adopting a 'pro-active' tax policy to attract inbound mobile workers, it does not recommend it as a general policy. In addition to policy recommendations, this paper also suggests specific reform measures that can be unilaterally taken as well as in the bilateral treaty negotiations in order to ensure that highly skilled workers move into and out of Canada without undue tax barriers.