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.
Constant visits to Canada despite being a citizen of another country will put you under the radar of residents. This could be an indication of strong or weak ties. Each case is treated differently since some ties are strong while others are weak. One would be branded as resident if he has a spouse living under common law. Ownership of a residential house or having dependents in Canada is likely to have you branded as a resident.
There are weak ties that may not appear binding but will affect your status. These ties are considered on a case-by-case basis, meaning that one person may be taxed for owning a vehicle while another is exempted. The ties include ownership of properties such as a car, having social ties like membership to a recreation facility like a golf or sports club, being a registered member of a religious group or possessing such documents as driving license, health insurance card, passport, etc.
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.
Elective filing is a provision made by CRA based on treaties signed with resident or citizenship countries. The provisions of this filing are captured in Part XIII where the amounts deductible are stipulated. The monies deducted are non-refundable. Regardless of the treaties signed, timber royalties, rental income and pension are all taxed, albeit at a reasonable rate to reduce chances of double taxation.
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.
America has a treaty with Canada that prevents occurrence of double taxation. Americans working for Canadian firms within Canada must pay taxes. Those working for American firms in US must also pay without being subjected to double taxation. Individual circumstances differ necessitating selective application of the law. Waivers on taxation depend on individual circumstances.
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.
Constant visits to Canada despite being a citizen of another country will put you under the radar of residents. This could be an indication of strong or weak ties. Each case is treated differently since some ties are strong while others are weak. One would be branded as resident if he has a spouse living under common law. Ownership of a residential house or having dependents in Canada is likely to have you branded as a resident.
There are weak ties that may not appear binding but will affect your status. These ties are considered on a case-by-case basis, meaning that one person may be taxed for owning a vehicle while another is exempted. The ties include ownership of properties such as a car, having social ties like membership to a recreation facility like a golf or sports club, being a registered member of a religious group or possessing such documents as driving license, health insurance card, passport, etc.
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.
Elective filing is a provision made by CRA based on treaties signed with resident or citizenship countries. The provisions of this filing are captured in Part XIII where the amounts deductible are stipulated. The monies deducted are non-refundable. Regardless of the treaties signed, timber royalties, rental income and pension are all taxed, albeit at a reasonable rate to reduce chances of double taxation.
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.
America has a treaty with Canada that prevents occurrence of double taxation. Americans working for Canadian firms within Canada must pay taxes. Those working for American firms in US must also pay without being subjected to double taxation. Individual circumstances differ necessitating selective application of the law. Waivers on taxation depend on individual circumstances.
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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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