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.
There are weak ties that are only considered if the strong ones are inapplicable. These ties are considered individually. Some of the most common ties include possession of documents like driving license, health insurance card and Canadian passport. Being a member of a religious organization like a church or joining a sports club will affect your residency status. These ties may be regarded as weak but they affect your obligation.
Income that is generated by Canadian sources is taxed. In most cases, the taxes are deducted at the source. This leaves you with the obligation of declaring the income. This means that you must have declared your status to the entity making the deduction. The most common rate is 25 percent. There are treaties that would allow for lower rates. Consult a specialist to fully know your obligations.
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.
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.
There are weak ties that are only considered if the strong ones are inapplicable. These ties are considered individually. Some of the most common ties include possession of documents like driving license, health insurance card and Canadian passport. Being a member of a religious organization like a church or joining a sports club will affect your residency status. These ties may be regarded as weak but they affect your obligation.
Income that is generated by Canadian sources is taxed. In most cases, the taxes are deducted at the source. This leaves you with the obligation of declaring the income. This means that you must have declared your status to the entity making the deduction. The most common rate is 25 percent. There are treaties that would allow for lower rates. Consult a specialist to fully know your obligations.
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.