Being a new Canadian Immigrant can bring up new tax implications. Set up an immigration trust to save on your new Canadian taxes.
New immigrants to Canada are subjected to Canadian income tax on their worldwide income, starting from the date they move to Canada. In an effort to increase immigration, the Canadian government does give immigrants a tax holiday for five years.
This means that your income overseas will not be subject to Canadian taxes for a period of up to five years. To qualify for the tax holiday, an immigration trust must be created. The trust will own your foreign assets and will not be subjected to taxation in Canada. It is very important that the majority of the trustees be located outside of Canada.
Here is the tip: Prior to moving to moving to Canada, create an immigration trust so you don’t have to pay tax on overseas earnings.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.