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Canadian tax on consultancy contract with foreign Company

Thank you for your question. Since the work was performed from your home in Canada, it is treated as “Canadian sourced income” and is taxable in Canada only.

Non-Resident US Return

If you maintain your home in Canada and travel back and forth the US for work, then you will likely remain a resident of Canada and a non-resident of the US pursuant to the Canada-US tax treaty. That means you will have to pay income tax in the US on your US earnings. As a … Continue reading Non-Resident US Return

If I wish to sell an Indian property and repatriate the funds back in Canada, what is the procedure?

If the sales proceeds are more than $100,000 CAD, and are kept in an Indian account, then you must complete form T1135. In addition, you must report and pay Canadian tax on the capital gain from the sale of the Indian property. You can claim a foreign tax credit on your Canadian tax return for … Continue reading If I wish to sell an Indian property and repatriate the funds back in Canada, what is the procedure?

How to show foreign income before becoming resident of canada

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Non-Resident Selling Land

Thanks for your questions. Your sister has to apply for an application for a Certificate of Compliance with the CRA within 10 days of the closing date. With this certificate, she will attach a payment made payable to the Receiver General of Canada for 25% of the gain realized on the sale. Once the buyer’s … Continue reading Non-Resident Selling Land

Do I need to file a Canadian return?

If you already claimed a foreign tax credit on your US return for the taxes withheld, there’s no sense in filing a Canadian return. The taxes deducted at source represents your final obligation to Canada. Under regulation 105 of the Canadian income tax act, a tax of 15% is deducted by the payer from payments … Continue reading Do I need to file a Canadian return?

Moving south While keeping Ontario Incorporation.

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is possible to pay CPP every month during the year as a self-employed individual?

You can make tax installments during the year to the CRA. This will be applied towards income taxes + CPP premiums payable on self employment earnings.

income employee tax breaks for 6 figures

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Business Tax On Earning US Dollars While Living In Canada

Yes, it will be considered to be a CCPC carrying on an active business in Canada and not a personal services business.

What is the difference between total expense and personal portion?

The total expense includes the personal portion and the rental portion.

income employee tax breaks for 6 figures

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Mortgage Interest on a Home

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Mortgage Interest on a Home

No, interest paid on a mortgage for a primary residence is not added to the cost basis and it is not tax deductible.

RESP and RRSP contribution as a non-resident

Stop contributing to a RESP once you become a non-resident. You are not allowed to do so. Furthermore, you can contribute to your RRSP once you become a non-resident, but you won’t be able to deduct the contributions from your income, since you won’t have any income to report to the CRA. Yes, you can … Continue reading RESP and RRSP contribution as a non-resident

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