Do I become a non-resident as soon as I relocate to a foreign country?
Allan Madan, CA
No. Your residency status and whether you have to pay Canadian tax on worldwide income is determined by assessing the strength of residential ties to Canada. In order to be considered a non-resident for tax purposes, you must sever primary ties to Canada:
- Sell or rent your home in Canada
- Spouse must move from Canada
- Children must move from Canada
You should also sever as many secondary ties as possible. Severing secondary ties include selling personal property, closing bank accounts, cancelling heath/insurance plans, cancelling social memberships, etc. Secondary ties are evaluated collectively so holding one or two secondary ties will not deem you to be a resident of Canada.
Disclaimer
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.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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