If I leave Canada for a year or so, I dont pay Canadian taxes right?

[ruthless29]

Hi there. If I leave canada for a year, do I have to pay taxes back home? Also, do I have to notify CRA?

I was in university for the first half of the year, so am I still eligible for half a year of tax refund?

thanks a million in advance for your help.

[gilboman]

of course you still pay taxes!! why wouldnt you:confused:

you only wouldnt pay taxes if you declare non-resident status before you left.

[Barayolayosa]

This is a question of residency, and depends on a number of factors. See here for more info: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

[cgtlky]

Hi there. If I leave canada for a year, do I have to pay taxes back home? Also, do I have to notify CRA?

I was in university for the first half of the year, so am I still eligible for half a year of tax refund?

thanks a million in advance for your help.

Yes, unless you filed with CRA what you are leaving Canada else you have to pay them tac regardless which country you go, if you work in another country and that country have a tax treaty with Canada you will pay less or nothing at all.

[belowzeros]

You'll pay taxes in the country you move to and Canada.

You can get the taxes in your current country refunded but it's a pain in the butt although mostly about waiting. Get a study visa if you haven't already it helps with things like that.

[IzzLe]

You'll pay taxes in the country you move to and Canada.

You can get the taxes in your current country refunded but it's a pain in the butt although mostly about waiting. Get a study visa if you haven't already it helps with things like that.

I'm pretty sure he still has to pay Canadian taxes, even on foreign income, if the country where he is working does not have any tax treaty with Canada.

[belowzeros]

I'm pretty sure he still has to pay Canadian taxes, even on foreign income, if the country where he is working does not have any tax treaty with Canada.


yes that's what i said maybe it reads differently than i tried to explain.

even if there is a tax treaty in the other country, you still have to pay cdn taxes on your foreign income and you will probably be taxed by your employer in the foreign country. you can have the IRS for example refund you your taxes deducted based on certain criteria.

[boyoflondon]

I'm pretty sure he still has to pay Canadian taxes, even on foreign income, if the country where he is working does not have any tax treaty with Canada.

Gotta love that ... you get f'ed on both sides.

[florch]

This is a question of residency, and depends on a number of factors. See here for more info: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

This is right. You have to declare yourself non-resident. There are other hoops to jump through as well - they used to include: Minimum 2 years away, very limited property remaining in Canada - no real estate, address, bank accounts, RRSP's etc. This may have been liberalized somewhat since.

I think if you're bringing tens or hundreds of thousands back into the country to be spent or invested in Canada, you've done your part - taxing this money is just greedy and bad business on behalf of the government.

Flame away, commies.

[peterpatch]

This is right. You have to declare yourself non-resident. There are other hoops to jump through as well - they used to include: Minimum 2 years away, very limited property remaining in Canada - no real estate, address, bank accounts, RRSP's etc. This may have been liberalized somewhat since.

I think if you're bringing tens or hundreds of thousands back into the country to be spent or invested in Canada, you've done your part - taxing this money is just greedy and bad business on behalf of the government.

Flame away, commies.

You are an enemy of the proletariat!, lol just kidding, I agree with you to a point. I think they should have to pay less taxes because they are using less services. My American friend only has to pay tax on his foreign earnings that exceed approx $75,000, not a bad deal. I have to pay tax on the difference between my Japanese and CDN income tax brackets. I get a credit for my taxes paid to Japan because of a tax treaty.

OP: Refer to the CRA website and look up things like 'residency' and 'international' to find the answer to your question.

[jda]

This is right. You have to declare yourself non-resident. There are other hoops to jump through as well - they used to include: Minimum 2 years away, very limited property remaining in Canada - no real estate, address, bank accounts, RRSP's etc. This may have been liberalized somewhat since.

I think if you're bringing tens or hundreds of thousands back into the country to be spent or invested in Canada, you've done your part - taxing this money is just greedy and bad business on behalf of the government.

Flame away, commies.

A lot of wrong information here.
You can have bank accounts now since non-resident interest is not taxable, you just need to inform your banks so they don't issue you T5s.
You can have RRSP, it's tax shelter anyway so it has nothing to do with your residency.
The main thing is real estate, if you own a place you have to get rid of it or rent it out. Other than that, everything else is simple. If you have any question, just call International Tax Center at 1-800-267-5177.

Edit: if you are only leaving for a year, it might not worth the effort to go through this especially if you aren't going to generate too much income.

[Wonderdollar]

A lot of wrong information here.
You can have bank accounts now since non-resident interest is not taxable, you just need to inform your banks so they don't you T5s.
You an have RRSP, it's tax shelter anyway so it has nothing to do with your residency.
The main thing is real estate, if you own a place you have to get rid of it or rent it out. Other than that, everything else is simple. If you have any question, just call International Tax Center at 1-800-267-5177.

Edit: if you are only leaving for a year, it might not worth the effort to go through this especially if you aren't going to generate too much income.


I believe that the Bank will issue you a NR4 instead of T5 and would deduct non resident withholding tax.

Please see this link http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#f

[florch]

A lot of wrong information here.
You can have bank accounts now since non-resident interest is not taxable, you just need to inform your banks so they don't you T5s.
You an have RRSP, it's tax shelter anyway so it has nothing to do with your residency.
The main thing is real estate, if you own a place you have to get rid of it or rent it out. Other than that, everything else is simple. If you have any question, just call International Tax Center at 1-800-267-5177.

Edit: if you are only leaving for a year, it might not worth the effort to go through this especially if you aren't going to generate too much income.

Thanks for the clarification. I've had various friends who've done it, and originally they had to sell their houses, but since have decided to look for a vacation property due to a rule change/relaxation.

[angel_wing0]

Hi there. If I leave canada for a year, do I have to pay taxes back home?

base on just that question, yes. Leaving the country for a year doesnt mean u are not a canadian resident anymore (unless u show clear signs that u are getting out of the country for good), which means u will be taxed as a fulltime resident, hence your worldwide income for the year will be taxed.

[CheapScotsman]

non residency for tax purposes is targeted for those who are moving out of the country for good ... but that doesn't mean that you can't come back. Those moving out fo the country for a "fixed" duration don't really qualify, although you can make yourself look like you do.

One year is very short. You could get flagged for review just based on that. The more you look like you are planning not to come back the better. Open ended date. get rid of your drivers license, MSP, credit cards, sell or long term lease your home and cancel all professional associations. Keep perhaps one bank account and maybe one credit card.

You can keep your registered plans; they are for retirement anyways.

[jda]

I believe that the Bank will issue you a NR4 instead of T5 and would deduct non resident withholding tax.

Please see this link http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#f

They don't withhold interest tax any more starting this year because of bill 38 (I think). I am certain about the no withholding part because I am currently a non-resident.

[B0000rt]

Thanks for the clarification. I've had various friends who've done it, and originally they had to sell their houses, but since have decided to look for a vacation property due to a rule change/relaxation.

Your friends who have done this did this to prove their residential ties are no longer to Canada.

On your T1 there's a section in the front where you specify when you left Canada.

Do know if you do get taxed, it's not a double tax, you pay the taxes in the country you're in, then you use those tax credits towards paying taxes in Canada, stupid annoying, which is why I severed residential ties to Canada last year. I love these American income taxes where I can file jointly with my wife who makes no money!