Do I or my children need to be Permanent Residents of Canada for me to open an RESP account and contribute?

In order to open an RESP account, the subscriber and the beneficiaries (children) do not need to be Permanent Residents of Canada. However, the beneficiary is required to be a Canadian resident for tax purposes and have a valid SIN. For more information on residency status, please visit CRA page on Residency status If you … Continue reading Do I or my children need to be Permanent Residents of Canada for me to open an RESP account and contribute?

Who can claim the Overseas Employment Tax Credit?

In order to claim the Overseas Employment Tax Credit, individuals are required to be a Canadian resident or deemed resident at any time in the year AND earn employment income from performing at least 90% of the work outside of Canada for more than six consecutive months with a specified employer. As well, the employment … Continue reading Who can claim the Overseas Employment Tax Credit?

What’s the tax payable by non-residents on the sale of Canadian real estate?

If real estate is sold by a non-resident, 25% of the gross sale proceeds is obligated to be withheld by the purchaser and remitted to the Canada Revenue Agency (CRA). The withholding tax amount can be reduced if the vendor acquires a Certificate of Compliance from CRA on time. By filing the form, the withholding … Continue reading What’s the tax payable by non-residents on the sale of Canadian real estate?

I am a non-resident contractor providing services in Canada. My client is withholding 15% of my fee as withholding tax. How can I recover them?

If you believe that your actual tax liability will be less than 15% due to a tax treaty between your country and Canada or for other reasons, you may apply for the Regulation 105 Waiver in order to have the withholding tax reduced to a lower amount or even to zero. The CRA generally recommends … Continue reading I am a non-resident contractor providing services in Canada. My client is withholding 15% of my fee as withholding tax. How can I recover them?

If I am a non-resident working in Canada, can I apply non-refundable credits to lower my taxes in Canada?

Generally speaking, non-residents of Canada are not eligible to deduct non-refundable credits from their Canadian tax payable. However, if your income earned in Canada is 90% or more of your total worldwide income earned in the year, then you will be entitled to the same tax credits as residents of Canada are. This test takes … Continue reading If I am a non-resident working in Canada, can I apply non-refundable credits to lower my taxes in Canada?

What are the tax consequences for non-residents of Canada who become residents of Canada during the year?

Question: I am a non-resident of Canada living and working in Canada. However, I became resident of Canada half way through the year (eg. My family moved to Canada, I sold my principal residence in foreign country and bought a primary residence in Canada, etc). What are my tax implications? Answer: You will be responsible … Continue reading What are the tax consequences for non-residents of Canada who become residents of Canada during the year?

I’m planning to incorporate a business as a non-resident of Canada. Can I be a non-resident director and still incorporate?

Each province in Canada has their own residency requirements for directors of a corporation. If you don’t meet these requirements in a particular province of Canada, you cannot incorporate in that province. Note that a corporation requires a minimum of one (1) director. The list below outlines each province’s requirements for directors: Ontario: Majority of … Continue reading I’m planning to incorporate a business as a non-resident of Canada. Can I be a non-resident director and still incorporate?

What tax deductions can Americans working for a Canadian company in Canada claim?

Question: I’m an American considering work for a Canadian company in Canada. I understand taxes will be payable to Canada, both Federal and State. My residence and family will stay in the US. Can I deduct from gross income the following: Rent Food< Charitable giving Vehicle lease, gasoline & vehicle maintenance Airplane costs to travel … Continue reading What tax deductions can Americans working for a Canadian company in Canada claim?

Can I reduce my Canadian taxes for foreign taxes paid on foreign employment income?

Question: I was employed in another country and I had to pay taxes on my wages. Is there any way I can reduce my Canadian taxes with the foreign taxes I paid? Answer: For majority of the countries, yes. Canada has tax treaties with over 50 countries around the world with the main objective of … Continue reading Can I reduce my Canadian taxes for foreign taxes paid on foreign employment income?

I moved to the US and became a non-resident of Canada. What happens to my RRSP contributions?

There are a variety of factors you need to consider including your current year salary and your future plans in terms of returning to Canada. For example, if you had high income the year you left, you may still want to make an RRSP contribution in order to reduce your taxes owing. Withdrawing your RRSP … Continue reading I moved to the US and became a non-resident of Canada. What happens to my RRSP contributions?

I will be emigrating from Canada to the US, what are the tax consequences of my emigration?

If you are departing from Canada permanently, you will be required to pay taxes on any capital gains that arise from the deemed disposition of your non-personal assets. This means that all assets excluding those listed at the end of this FAQ are deemed to be disposed at their fair market value on the date … Continue reading I will be emigrating from Canada to the US, what are the tax consequences of my emigration?

I have a non-resident corporation. Do I also need to open a HST account and why?

In Canada, it is required for a corporation to register a GST/HST account if you anticipate your sales to be more than $30,000 CAD. GST/HST is a sales tax that Canadian consumers must pay at the time of purchase on most products and services.  As a corporation, it is your responsibility to collect GST/HST from … Continue reading I have a non-resident corporation. Do I also need to open a HST account and why?

I’m a non-resident of Canada. Can I use a Canadian P.O. BOX as the registered head office for my Canadian corporation?

Most provinces will not permit the formation of corporations, which use a P.O. BOX for their head office address.  A Canadian physical address is required.

I’m a non-resident of Canada. Can I still incorporate a company in Canada?

Yes you can. Forming and registering a corporation in Canada requires a registered head office in Canada. Also, most Canadian provinces require that the corporate directors be residents of Canada. However there are a few provinces such as British Columbia (BC), which allow non-residents of Canada to be directors of Canadian corporations. If a Canadian … Continue reading I’m a non-resident of Canada. Can I still incorporate a company in Canada?

If I am a non-resident of the US, do I need a social security number to file taxes?

As a non-resident of the US, you will require an ITIN (International Tax Identification Number) to file US Tax Returns. In order to receive this number you will need to fill out form W-7 and attach it with your US Tax Return for the year.

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