Tax on returing Resident and on Spouse Earnings, who is still non resident

Question

1963 viewsOctober 3, 2019Personal Tax

0

Anonymous Posted September 27, 2019

Hi,

Me and my wife and child got the permanent residency in May 2018. We did the soft landing, spent 15 days and left Canada. I have moved to Canada in Sept 2019 and my wife is still out of Canada. I am not claiming any child or spouse tax credits as they have not accompanied me. I have below mentioned queries

Can I claim Basic personal tax credit for remaining three months or not?
Do I need to declare my worldwide income in 2019 tax return or not?
Do we need to pay any tax on wife income earned outside Canada?
Do we need to pay tax on any money which my wife will bring with her next year?

Thank you

1 Answer

score 0 · Answer 1 · 2019-10-03T16:03:26+00:00

Thank you for your questions. My answers are as follows:

1. You can claim the personal tax credit for the 3 months that you are a tax resident of Canada. This credit will be prorated by the number of days that you are a resident of Canada divided by 365 days.
2. You will need to pay Canadian income tax on your worldwide income starting from the date that you become a tax resident of Canada (i.e. September 2019 and onward).
3. Your wife will become a tax resident of Canada on September 2019, because you permanently relocated to Canada as of September 2019. Therefore, she will also need to pay Canadian income tax on her worldwide income starting from September 2019 and onward. To get out of being a Canadian resident, she should refer to the tax treaty between her home country and Canada.
4. No, your wife does not have to pay tax on money transferred to Canada. See point 3.

Tax on returing Resident and on Spouse Earnings, who is still non resident

1 Answer

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