Non-Resident & International Tax Archives

Tax Implications for Non-Residents Earning Income from Canadian Rental Property

The Canadian real estate market has been a lucrative investment opportunity for foreign investors due to Canada’s relatively stable economy. If you are a non-resident or a foreign investor looking to enter the Canadian real estate market, this article is for you! The article will help you understand your tax obligations, provide strategies to reduce … Continue reading

Canadians Working Abroad and Non-Residents – Tax Repercussions

As part of our ongoing efforts to better engage and provide value to our clients, we regularly conduct informational tax webinars. Our webinar on September 3, 2015 focused on tax implications for Canadian non-residents and those who work abroad. Situation 2: Some of the topics covered in this webinar includes: Residency analysis and determination factors … Continue reading

Canadian Departure tax Rules

Who has to pay Departure Tax? Departure tax is levied by the Canada Revenue Agency (CRA) on individuals leaving Canada and severing their ties with Canada, either due to employment, business or any other reason. When do I have to file my departure tax return? Departure tax returns are regular returns that are due on … Continue reading

Property Management Tips for Non-Residents

Our homes are our biggest investments – their ongoing protection and maintenance are crucial for long-term value. what happens if you’ve relocated unexpectedly? or if you own an investment property from afar? who will take care of the property in your absence? In these instances, it’s important to secure a property management team capable of … Continue reading

Tax implications for Canadian employees working abroad

Tax Implications for Employees To understand the taxpayer’s responsibilities we must first determine their residency for tax purposes. In other words, will the employee remain a tax resident of Canada or will they become a resident of the US? To answer this question, we must consult the tax treaty between Canada and the US. Normally, … Continue reading

Canadian corporate loans to non-residents

There are a few reasons Canadian companies can choose to grant a loan. However, corporations need to be aware that lending to non-residents can lead to a requirement for the Canadian company to pay tax. Clearly, this situation is far from ideal. In this article, we will look at the tax implications of Canadian corporate … Continue reading

Foreign Accrual Property Income – Part 2

I have previously discussed how the Foreign Accrual Property Income (FAPI) applies to Canadians who establish corporations in a different country. For my previous article, please visit What is the Foreign Accrual Property Income (FAPI) in Canada? . After reading the article, more shrewd readers may ask, “What if I create a corporation in a … Continue reading

What is the Foreign Accrual Property Income (FAPI) in Canada?

Are you a Canadian Taxpayer looking to invest in another country? Have you heard of the ‘Foreign Accrual Property Income (FAPI)? If you have not, do not invest before you read this article! Imagine, if you will, a scenario. There is a wealthy Canadian taxpayer in the highest personal tax bracket. He has contributed … Continue reading

Non resident withholding tax – What is a section 217?

Are you a nonresident of Canada? Do you know what the Section 217 Election means for you? Doing business in another country can be difficult, as you have to deal with two systems and two different sets of laws. In this article, I will explain more about this potentially confusing topic and provide you with … Continue reading

Tax on foreign inheritance Canada

Français Do Canadians pay tax on an inheritance from abroad, overseas, our outside of Canada? This article will answer this question in detail, and provide a summary of inheritance tax in Canada. Estate of Deceased Person outside Canada When a person dies an estate, which is a type of trust, is automatically formed. The estate … Continue reading

Permanent Establishment for Short Term Contracts in the US

Imagine that you are a Canadian company sending an employee to the United States to fulfill a job order for a US customer. You feel that you know all about the Permanent Establishment rules and you are confident that as the employee is in the US on a temporary basis, his/her presence will not constitute … Continue reading

Tax Returns and Forms for Non-Residents

Are you a non-resident of Canada, or are you planning on becoming a non-resident in the near future? If yes, then you need to learn about the tax returns and forms for non-residents; otherwise, you could end up with a nasty surprise from the taxman. Becoming A Non-resident Becoming a non-resident for tax purposes is … Continue reading

Foreign Property Reporting for Canadians

As Canadians, we are very active in the global economy. In fact, many Canadians have foreign investments in countries from the United States to China. This article explains the foreign property reporting requirements that Canadians have with the Canada Revenue Agency. Foreign Property Reporting to the CRA Individuals looking to grow their wealth will often … Continue reading

Do non-residents of Canada pay capital gains tax?

Non-residents of Canada are required to pay tax on capital gains resulting from the sale of Canadian real estate. Failure to do so can result in huge penalties levied by the CRA. Sale of Canadian Real Estate by Non-residents of Canada Under Section 116 of the Income Tax Act, non residents who sell Canadian real … Continue reading

Non-Residents Earning Rental Income from Real Estate in Canada

Non Residents of Canada earning rental income from Canadian real estate have Canadian tax obligations. This article identifies the different forms and returns that can be or are mandatory to be filed with the CRA regarding the rental income earned. Background When non-residents receive rental income from real property in Canada, taxes on the income … Continue reading

Category: Non-Resident & International Tax