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.
It is safer to have a clear residency status. It is not mandatory that you stay in Canada to have taxation obligations. Ties of financial, investment, professional, etc nature mean that you have to pay taxes. The amount you are supposed to pay depends on the nature of these attachments. The regulations are very favorable to non-residents and are negotiated by countries 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.
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.
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.
It is safer to have a clear residency status. It is not mandatory that you stay in Canada to have taxation obligations. Ties of financial, investment, professional, etc nature mean that you have to pay taxes. The amount you are supposed to pay depends on the nature of these attachments. The regulations are very favorable to non-residents and are negotiated by countries 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.
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.
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.