Becoming a Non Resident of Canada Taxes
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- Опубліковано 7 чер 2011
- How do you become a non-resident of Canada?
If you are leaving Canada to work or live abroad and you are currently a Canadian resident, then the taxman can and will take a big bite from your wallet upon your departure.
There are 10 major tax implications that will directly affect you when you become a non resident of Canada, which are discussed in this video.
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Table of Contents
Four Factors to not be Considered a Resident
00:49 -- Permanent Home
01:03 -- Location of Spouse and Children
01:15 -- Personal Possessions
01:32 -- Social Ties
Ten Implications
01:57 -- Stop Receiving Children Tax Benefits
02:14 -- No More GST/HST Refund Cheques
02:31 -- Repay Owed Home Buyer's and Lifelong Learning Plans
03:01 -- Keep TSFA
03:13 -- RRSP
03:40 -- Banks and Financial Advisors
04:49 -- List All Properties Owned ($25,000+)
05:18 -- Selling Off Properties
06:40 -- Selling Canadian Home
07:55 -- File A Final Canadian Tax Return
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.
What people need is a guide showing them how to invest in the stock market as a non-resident of Canada. If you don't get any dividends or interest income your taxes should be zero as capital gains of stocks of non-residents aren't taxed. Next is how to choose a country that is well suited for this: No tax on foreign income obviously but there are several other criteria including qualifying for residency of another country because it seems that Canada doesn't declare you a non-resident without you being a resident of somewhere else. So you can't just travel aimlessly for years and expect to be deemed a non-resident. Now once you establish residency somewhere else it doesn't mean you have to stay there. Every country has rules on their residency, especially in the beginning. They generally don't want you getting residency then promptly flitting off somewhere taking your dollars with you instead of spending them in their country.
Thank you for your post.
Great info. Thanks!
hi Allan, great topics you addressed in a globalized economy. I left Canada for working in Europe and got married and had children abroad with a non-Canadian. I keep paying Canadian taxes. I still own a house in Canada that I only use on very short vacations and I don't rent it out. No Canadian income at all. Do I have to file Canadian taxes ?
Hey planning to be a non-resident, I notice some dividends are taxed 15% as a non-resident vs Selling Stocks at 25% , Are Stocks sold still just Capital gains taxed at 50% of the value sold? So if I sell the stocks it is 12.5% instead of 50% since it is only capital gains?
Tell me how the CRA would know that you didn’t spend more than six months in a year living in Canada ?
I have been in Korea for almost 11 years. I have not filed in Canada during this time. How can I become an NR as I have not lived in Canada nor have had an income there for 10 years. I don't have property nor any assets except my life insurance policy and bank account. How do I file while out of the country?
Can I include my spouse and children allowances on my tax. they are living outside Canada.
This was hyper relevant
@rlichota1 Thanks for the comments.
Allan
If one sells primary residence in one year and then moves next year at that point does one have to worry about capital gain tax from primary residence?
Yes, you still have to consider capital gains tax. Just because you moved into your home for a year (or less), does not mean the entire gain on sale of the home will be exempt from capital gains tax. The principal residence exemption prevents capital gains tax for the years that you lived in the home as your primary home. For example, if you bought your home in 2004 but only lived it for 1 year, then the principal residence exemption would only prevent capital gains tax on 1 / 11th of the total gain.
Does this work for reservations?
Do you have to sell your home in Canada or can you keep it and still claim non residency?
I am planning on NOT selling my shares before I become a non resident. will the CRA still want to tax me?
Yes, the shares will be subject to departure tax if they are held outside a TFSA, RRSP, or RPP.
I wanted to be canadian, now I want to be non resident. Life. Robert Lichota.
And thank you.
Hey, did you permanently move? Wondering what you have done with tax implications going back to this topic.
You are not alone in this lol!
I have a Canadian corporation and am still paying canadian taxes on my pay cheques. I recently got mexican residency and would like to stop paying canadian taxes. Do you have a good plan for that? Can I keep the corporation or do I have to sell it? I have a $800k capital gains exemption right?
Hi Leen, did you find out what the best thing to do is? I am in the same situation as you.
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