The work of collecting taxes in all jurisdictions around the world rests with revenue authorities. It is rare that such authorities collect taxes or returns from persons living outside their countries unless they have investment interests. In Canada, non-residents have obligations based on their status. Here is Canadian tax advice for non-resident investors according to a taxation expert.
Be clear on your residency. In case you are considered a citizen of another country yet you have business, financial, professional, etc ties with Canada, you will be required to pay taxes. Unless you have understood your status, it will be impossible to meet your obligations. There are generous residential ties provisions and reasonable regulations for non-residents to avoid double taxation.
If you routinely live in another country where your status is resident, you most likely will be regarded as a non-resident. This puts you in a bracket of persons with obligations because they have strong or weak ties with Canadians. In case you own a home in Canada, have dependents or people under common law in Canada, you are required to pay taxes. If your spouse lives in Canada, you may be eligible to pay taxes especially if you visit the country regularly.
Your status may also be affected by weak ties that are seemingly not binding. The authority considers the ties on individual bases since they are regarded as weak and can only be used where the strong ones do not apply. The ties include membership to social amenities like sport clubs and churches, owning a property like a car and possession of documents like health insurance card, passport or driving license.
You are required to pay taxes on all monies emanating from salaries or investments in Canada. In most cases, employers will deduct and remit the money directly. Your responsibility will be to clarify the status to your employer, ensure that the right amounts are deducted and file returns. The taxation percentage for most foreigners is 25 percent unless there are special circumstances. It helps to consult an expert in order to avoid legal battles with CRA over non-remittance of taxes.
There is a provision for elective filing of returns. It mainly affects persons whose countries of residency have treaties with Canada. The provision is regarded as Part xiii and the amounts deducted are non-refundable. Some of the income sources that must be taxed include pension, timber royalties, rental income, etc.
Persons employed by the government or governmental organizations like embassies are either deemed or factual residents. The determination whether you are factual or deemed resident depends on the ties already cultivated. For instance, a soldier who is stationed abroad but has a house in Canada has factual residency status. A comrade of his who sold his house before leaving has deemed residency. The obligations of the two soldiers will differ despite both being employees of the same government.
For an American citizen working in Canada, your obligations are on income coming from work or investment in Canada. This is because of a treaty signed with the American government. There is a provision for waiver of withheld taxes under certain circumstances. Canadians employed by American companies are also affected by the treaty especially if they live in America.
Be clear on your residency. In case you are considered a citizen of another country yet you have business, financial, professional, etc ties with Canada, you will be required to pay taxes. Unless you have understood your status, it will be impossible to meet your obligations. There are generous residential ties provisions and reasonable regulations for non-residents to avoid double taxation.
If you routinely live in another country where your status is resident, you most likely will be regarded as a non-resident. This puts you in a bracket of persons with obligations because they have strong or weak ties with Canadians. In case you own a home in Canada, have dependents or people under common law in Canada, you are required to pay taxes. If your spouse lives in Canada, you may be eligible to pay taxes especially if you visit the country regularly.
Your status may also be affected by weak ties that are seemingly not binding. The authority considers the ties on individual bases since they are regarded as weak and can only be used where the strong ones do not apply. The ties include membership to social amenities like sport clubs and churches, owning a property like a car and possession of documents like health insurance card, passport or driving license.
You are required to pay taxes on all monies emanating from salaries or investments in Canada. In most cases, employers will deduct and remit the money directly. Your responsibility will be to clarify the status to your employer, ensure that the right amounts are deducted and file returns. The taxation percentage for most foreigners is 25 percent unless there are special circumstances. It helps to consult an expert in order to avoid legal battles with CRA over non-remittance of taxes.
There is a provision for elective filing of returns. It mainly affects persons whose countries of residency have treaties with Canada. The provision is regarded as Part xiii and the amounts deducted are non-refundable. Some of the income sources that must be taxed include pension, timber royalties, rental income, etc.
Persons employed by the government or governmental organizations like embassies are either deemed or factual residents. The determination whether you are factual or deemed resident depends on the ties already cultivated. For instance, a soldier who is stationed abroad but has a house in Canada has factual residency status. A comrade of his who sold his house before leaving has deemed residency. The obligations of the two soldiers will differ despite both being employees of the same government.
For an American citizen working in Canada, your obligations are on income coming from work or investment in Canada. This is because of a treaty signed with the American government. There is a provision for waiver of withheld taxes under certain circumstances. Canadians employed by American companies are also affected by the treaty especially if they live in America.
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For constructive Canadian tax advice for non-resident investors, we invite you to use our website as a good source of info. Spend a few minutes exploring our web pages at http://www.taxca.com.
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