Category: Non-Resident & International Tax

What happens to your RESP when you become a non-resident?

You must stop contributing to your RESP when you become a non-resident.  The amount withdrawn from your RESP is subject to tax. There are many other implications to becoming a non resident: Severing ties with Canada Filing departure forms Filing departure tax return

I am considering moving my business and business-owned property offshore. What are the consequences?

When moving your business from a Canadian corporation to another corporation in a tax-free country, you are deemed to have disposed of that business assets’ at their Fair Market Value. This triggers capital gain tax, which must be paid to the CRA  Proper tax planning is required to minimize capital gains tax, and to ensure … Continue reading I am considering moving my business and business-owned property offshore. What are the consequences?

I am a non-resident of Canada for tax purposes, what are my options and consequences in regards to RRSP Withdrawal?

Question I am a Non-resident of Canada for tax purposes, what are my options and consequences in regards to RRSP withdrawal? Answer: You have the following options: You can withdraw amount from time to time (this is subject to part 13 withholding tax of 25%). OR You can withdraw a lump sum amount (you will … Continue reading I am a non-resident of Canada for tax purposes, what are my options and consequences in regards to RRSP Withdrawal?

If I am an employee working overseas, can I contribute into CPP?

CPP is simply payable on Canadian earnings. Contributions are based upon the amount of Income earned here in Canada. If you are an employee working abroad, voluntarily based CCP contributions can be made if Canada has a Social Security agreement with the other country. The following conditions must be met: Employee is a resident of … Continue reading If I am an employee working overseas, can I contribute into CPP?

If I pay taxes in another country, is there any relief on my tax burden in Canada?

Depending on the tax treaty between Canada and the country you paid taxes to, you can claim certain Foreign Tax Credits (FTC’s) to help minimize your tax burden.

Is there any way that I can avoid paying taxes on my RRSP withdrawals if I am a non-resident?

We can help you file a non-resident tax return by making an election under section 217. By filing this return you will be eligible to be refunded all or a portion of taxes withheld on your RRSP withdrawal.

If I am currently living outside of Canada and have a RRSP, can I withdraw my funds from the RRSP tax free?

Unfortunately, if you are a non-resident of Canada and have an RRSP, any withdrawal from the RRSP while you a non-resident will be subject to a withholding tax of 25% on the withdrawal.  You can receive a refund for all or a portion of the withholding tax paid, by filing a Section 217 tax return … Continue reading If I am currently living outside of Canada and have a RRSP, can I withdraw my funds from the RRSP tax free?

What Happens To Your Child’s RESP When You Leave Canada?

You have to be a Canadian resident to receive the government grant related to RESPs. The tax-sheltered status of the RESP only applies to Canadian residents. If the subscriber or account owner is a non-resident, they might have to pay taxes on any income earned in the RESP account as well as capital gains, according … Continue reading What Happens To Your Child’s RESP When You Leave Canada?
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