Canadians Working Abroad, Overseas, Outside Canada - Tax Implications
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- čas přidán 6. 09. 2024
- If you wish to find out about taxes for Canadians working overseas, you've come to the right place. Next, find out all you need to know about Canadians working abroad.
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(Including Tax Tips for Canadians, Personal Tax Planning Guide for Canadians: 2014 Edition and 20 Tax Secrets for Canadians)
Table Of Contents
00:43 -- Canadian Residency Status
02:34 -- What To Do When You Leave Canada
02:46 -- Departure Tax Return
03:10 -- Termination Of Residency
03:46 -- Inform CRA You Don't Want HST Or Benefits Anymore
04:15 -- Tell CRA About Your Assets
05:07 -- Pay Departure Tax
05:43 -- Speak With Financial Advisor
06:45 -- When You Have To File A Canadian Tax Return
07:18 -- Withholding Tax
09:10 -- Factual Resident Of Canada
09:36 -- Filing Obligations
10:55 -- Foreign Tax Credits
11:57 -- Overseas Employment Tax Credit
Disclaimer:
The information provided in this video is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.
If I work in Switzerland and taxed at 20% while on that income in Canada tax is 37%. That would mean you don't have to pay 17% to Canada? Or they would give foreign tax credit of 15% and pay to Canada the rest 2%???
Hi Allan, very informative. thanks a lot.
Do you advise that someone who moves to a country like the bahamas file a nr73 form? The residency requirement that asks for proof of paying income tax in the new country seems like it could cause issues.
Hi Travis,
Filing form NR73 is not mandatory. Instead, file a departure return.
What about wife and child move back and husband stays to work abroad?
Hello,
If the wife and child move back to Canada, and the husband stays overseas, then the husband and wife will be classified as tax residents of Canada, unless protected by a tax-treaty. Tax residents of Canada are subject to taxation on their worldwide income.
Thank you for the information.
If you still owe back taxes can u become a non resident?
If am Canadian PR and have registered company in Dubai where there is no tax and if I transfer my income from Dubai to my Canadian account
Very interesting and well paced. I am leaving for China on a 3 year contract in a film academy and have been wondering how the hell I have to do what is needed. I now understand i am still a factual resident as my daughter stays here and i still have the rented accommodation - however - if I keep all my funds in the bank, and do not withdraw them, will I be liable to pay tax on this or not...thank you for your video - PS: I like your hands - not at all distracting !
+Jeannette Pope You will be liable for tax on the interest earned. Your bank is required to deduct taxes on interest payments made to you.
Hi Allan, thanks for the information, it’s very useful. I have a question on the topic, is there provincial tax credits can be use for foreign credit？ What is the qualifications?
For temporarily living abroad, if I have my wife and kids with me while working abroad, but I still have my house and belongings in Canada and still paying resident tax in Canada. Are my kids eligible for canada child benefits?
Hi Allan, thanks for the information. I just became Canadian last June. I am a single and I am the only one living in Canada. My parents have US green card and from their invitation, I got US green card last May this year. I wonder if there is any issue on my Canadian citizenship if I decide to move US?
I have one property and I am considering to go school in US after selling my property. Do I have to report departure in this case? I want to keep my bank and credit card if it is possible. What would you suggest me to do?
Hi YT,
You will become a non-resident of Canada for tax purposes if you permanently relocate to the US and sell your Canadian property. You can keep your Canadian bank accounts and credit cards. In addition, a departure return will need to be filed with the CRA by April 30 of the year following the year of your departure from Canada.
Obtaining a US Green Card will not impact your Canadian citizenship.
Hi Allan, very clear and concise content.
I have a question. A person who was a non resident of Canada for tax purposes for 2 years (May 2018 to July 2020) just returned to Canada. Now should he file his tax return to CRA for any foreign income earned in 2019? He had filed for The period he lived in canada in 2018.
Hello are you accepting tax filing? How can i contact you?
Hi Allan, thank you for all the advise. I am a PR living in QC and am self-employed (collecting GST & QST), I am an advisor/consultant on environment, governance and institutional development -- my main client last year was a Mexican non-profit, which had me on retainer and to which I provided monthly invoices with GST & QST. Is there anything that I should do differently as if my client was a Canadian business?
If your customer is located outside Canada, you are not supposed to charge them GST or QST. This is because the services provided are zero-rated and considered as export services.
Hi Allan,
thanks for this wonderful video.
I have a question
I'm a Canadian citizen, working for a US-based company in Washington D.C remotely (I leave Canada for only 40 days trough out the year). let's say my income in CAD 200K. I have my family and assets and bank accounts and driving license in Canada, ON. I hold a TN Visa.
Now, My question is, how much tax I should pay in the US and Canada?
I'm a full-time employee in the US company and I live in the US less than 183 days in the year.
thanks,
Hi @Hassan Kazemi,
You are a Canadian tax resident because your wife and children live in your family home in Canada. As a result, your US income will be fully taxable in Canada. If you are earning $200,000 CAD, then you will pay approximately $70,000 of Canadian income tax, less a foreign tax credit for the taxes paid to the IRS and State of Washington.
@@AllanMadanCA Could he not form a corporation in Canada to reduce his taxes, assuming that his US company agrees to pay his salary to his Canadian business bank account?
Thanks for the information. I am an American union carpenter and am considering immigrating to Canada for work. It would be through the union, and I would retain all benefits of my local union here in the US, but would be able to use the Canadian healthcare. Would I still only file taxes with the US? How is it, I can use the Canadian healthcare, if I am not paying into it? Also, do you think the difference in pay from $26 USD to 42 CD would be worth the move and hassle, considering the cost of living difference? I currently live in Dallas.
Hey ,we (my wife and daughter)have been living and working in Switzerland over 5 years !we have a house in Canada which is rented out but the rent goes towards the mortgage !we still have our bank accounts with little cash in it!as far as I know that Swiss and Canada have a double taxation treaty and we wanted to know what status we have in Canada???
Hi, did you figure out an answer to your question? Did your daughter receive ccp while you are outside canada?
Hi Allan
Can you advise I am a canadian who is starting a job in chicago I will be entering the US with my OPT visa which will allow me to work, however the company has filed for me to get my h1b which may become available in october, my status in the U.S is considered NRA, I will be staying in the u.s for a few years. should i seek to change my status in canada
I am considering move out of Canada to work in Saudi Arabia. Once I become non-resident, I want to send my grade-11 son to a private boarding school in Hamilton ON may be as an international student and will not take any government benefits.I will tell CRA to stop paying me child tax and universal child tax benefits. I am planning to give away all the provincial health cards/benefits.I would like to keep my primary residence home. But give it to a professional property manager. I also have a rental property which I plan to give to a professional real estate company for management. Both will be considered business and will file my non-residence tax regularly with CRA. Myself and my wife want to keep RRSP & TFSA (Questrade) . I will keep a bank account with TD bank. I also want to keep the Canadian drivers license.Would I be considered as non-resident? Or are these too many ties to consider me as resident Canadian for tax purposes?Thanks in advance...
Following
Hi Allan, thank you for the great explanations. We are Canadians who own a house Canada (principal residence), and moved to Germany, where we have jobs, a few years back. For the purpose of principal residence exemption shielding, can we "choose" to also be considered residents in Canada for tax purposes (is this duality something CRA would accept) ?
Unfortunately, you cannot choose to have your home in Canada as your primary residence for the purpose of the principal residence exemption, and still be treated as non-residents of Canada.
I have an ecommerce business which is in the united states, I pay selling taxes and income taxes, but I want to have the Canadian permanent residency and then citizenship, with the permanent residency, I would need to pay double tax?! the one I already payed to the U.S (27%-35% if I made 300K usd) and then pay 33% on federal tax + 16.8% Provincial tax?? or I can get tax relief in this case?
Hello,
Are you planning on moving to Canada and becoming a permanent resident of Canada? If this is true and if you conduct your e-commerce business from a location in Canada (with no physical presence in the US), then you will not be liable for US income taxes on sales made to the US.
This is because you will not have a permanent establishment in the US (i.e. a fixed place of business). I am assuming that you are not a US citizen and are not a US green card holder. However, you will be taxable in Canada on your worldwide income.
Would just having a drivers licence, Bank accounts, and Credit cards be reason to still be a Canadian residence; if u dont have Primary factors?
A few secondary ties (like the ones you mentioned below) shouldn't cause you to become or remain a resident of Canada. To be conservative, it's best to cancel as many secondary ties as you can in order to avoid being a tax resident of Canada.
Hello Allan and thank yous so much for this very informative video that you have produced. If I may ask a question? My wife has an opportunity for employment in Bangkok Thailand as an Engineer. She is four years from retirement. She would like to work there for the next four years but for obvious reasons does not wish to give up her resident status (she would not be able to anyway for the reasons you so well explained) . Can a factual resident work for 4 years outside of Canada (BTW it is not a Canadian company) and continue to file World Wide income with CRA and continue to take advantage of the tax credit ??
thanks
Greg
Hi Greg, she can remain a factual resident of Canada so long as she:
1. Keeps all or most of her secondary ties to Canada
2. Maintains a home in Canada available for her use
3. Has a spouse in Canada
4. Intends to return to Canada after the work assignment is over
Thank you sit for your kind reply
@@AllanMadanCA Sorry I just saw your reply recently and have not had a chance to thank you for this information. \You have been a great help. thanks again Greg
Hi Allan, great video. Have a question. I was a Canadian resident as landed immigrant for 27 yrs. Just moved to US married American and currently holding a green card in US. I'm holding a Singapore citizen. My question is I have a Locked In RRSp in BC Canada. CRA just sent me a letter of confirmation to my Non Residency status as I did sent in NR73 E (which declares I'm no longer a resident of Canada . How does it affect me in taxes in US and Canada should I withdraw my funds. As I am still a Singapore citizen. Appreciate your advise. Thanks.
Check with the bank if you are able to unlock your LIRA so that you can make withdrawals. A withholding tax of 25% will be deducted from withdrawals made from your LIRA or RRSP. You can claim a foreign tax credit on your US return for the taxes deducted.
Hi Allan
The video you provided on CZcams is very useful but I would like to correct few things about your video.
Please in future videos do not move your hand at all as its very distracting to focus on you talking.
And also put all your points in front of you instead of the side also relax by setting down and have some books in the background
I hope you don't be offended by this message
Thanks for your useful information
Regards
Amaar
Hi Amaar, I did not see any correction in your message but just your personal opinion. Instead of pointing out all negatives , you could have focussed on information being provided ?
Thanks
Hi Alan, thx for video very informative! my question is; i'm leaving soon and already sold my principal property but my closing date is within 2months after i leave..will that be a problem? would i pay any taxes, etc...? thx you!
you move your hands a lot