What happens to my TFSA if I depart Canada and become a non-resident?
Allan Madan, CA
If you are becoming a non-resident of Canada, you do not have to close your Tax Free Savings Account (TFSA). Even after becoming a non-resident, you will not be taxed in Canada on any withdrawals from the account or any earnings within the account for the amounts contributed as a resident.
Note that you cannot contribute to the TFSA beginning the date of your non-residency. Contributions as a non-resident (excluding qualifying transfer or an exempt contribution) will be taxed on at a rate of 1% for each month the contributed amount is kept within the account.
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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