- Canadians who work permanently in a foreign country
- Determine residency status
- To determine residency status, CRA looks primarily at:
- Where your permanent home is
- Where your close family members live (ex: spouse and children)
- Where you are currently living
- To determine residency status, CRA looks primarily at:
- CRA will also look at:
- Credit cards
- Bank accounts
- Social connections
- Determine residency status
- To do List (before you leave Canada):
- Departure Tax Return
- Indicate the date you officially left Canada
- Departure Tax Return
- Form NR73
- Determination of Resident Status upon leaving Canada
- CRA will give you a written statement stating whether you are a resident of Canada or a non-resident Canadian
- Stop receiving Tax credits
- If the CRA finds out that any Canadian working abroad is
still receiving tax credits, you (non resident Canadian) will have to
pay all those tax credits back to the CRA plus any interest it accrued.
- If the CRA finds out that any Canadian working abroad is
- Disclose Assets to the CRA
- Non-resident Canadians need to give CRA a full list of any assets you own before you leave
- If you do not do this, CRA can impose a heavy penalty on you.
- Note: you are not required to file this form if your assets (total) are less than $25,000
- Departure Tax
- Must pay departure tax on the gains you got from selling all your assets
- Note: it is assumed that when you leave Canada you sold all you assets at the market value.
- Check if you need to file tax returns in Canada
- You have to file a tax returns if:
- You were an employee in Canada and earned income
- If you had a business in Canada
- You disposed Canadian property (Ex: real estate)
- You have to file a tax returns if:
- Withholding Tax
- Is applied at a rate of 25% on income you receive from sources in Canada
- Includes dividends, interest, CPP, pensions, etc.
- Canadians who work temporarily in a foreign country
- You are still considered a factual resident of Canada even if:
- You worked temporarily outside Canada
- You teach or attend a school outside of Canada
- You commute frequently to work in U.S.
- You frequently vacation outside of Canada
- You are still considered a factual resident of Canada even if:
- Tax obligations
- As a Canadian working abroad you need to:
- File personal tax return
- Pay tax on your worldwide income
- Claim tax credits and deductions
- Pay federal and provincial tax
- As a Canadian working abroad you need to:
- Foreign Tax Credits
- Canadian Income Tax Act can help by providing you with foreign tax credit
- The foreign tax credit is the least of the two amounts
- Income tax you paid abroad
- Canadian tax payable on the foreign source of income
- Overseas Employment Tax Credit
- To be eligible for this tax credit you should be working for
an employer who is Canadian and you should be working overseas for more
than 6 months. - In order to be eligible, you must also be working in one of the following industries:
- Petroleum, natural gas, minerals, etc.
- Construction, installation, agriculture or engineering work
- Working for the UN
- To be eligible for this tax credit you should be working for
Disclaimer The information provided on this page 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. Ishali Mulchandani and IDM will not be held liable for any problems that arise from the usage of the information provided on this page.
