non resident and international tax Archives

I am a non-resident contractor providing services in Canada. My client is withholding 15% of my fee as withholding tax. How can I recover them?

If you believe that your actual tax liability will be less than 15% due to a tax treaty between your country and Canada or for other reasons, you may apply for the Regulation 105 Waiver in order to have the withholding tax reduced to a lower amount or even to zero. The CRA generally recommends … Continue reading

If I am a non-resident working in Canada, can I apply non-refundable credits to lower my taxes in Canada?

Generally speaking, non-residents of Canada are not eligible to deduct non-refundable credits from their Canadian tax payable. However, if your income earned in Canada is 90% or more of your total worldwide income earned in the year, then you will be entitled to the same tax credits as residents of Canada are. This test takes … Continue reading

What are the tax consequences for non-residents of Canada who become residents of Canada during the year?

Question: I am a non-resident of Canada living and working in Canada. However, I became resident of Canada half way through the year (eg. My family moved to Canada, I sold my principal residence in foreign country and bought a primary residence in Canada, etc). What are my tax implications? Answer: You will be responsible … Continue reading

I’m planning to incorporate a business as a non-resident of Canada. Can I be a non-resident director and still incorporate?

Each province in Canada has their own residency requirements for directors of a corporation. If you don’t meet these requirements in a particular province of Canada, you cannot incorporate in that province. Note that a corporation requires a minimum of one (1) director. The list below outlines each province’s requirements for directors: Ontario: Majority of … Continue reading

Deferral of Tax Payment on RRSPs for Non-residents

How to avoid paying tax on RRSPs for non-residents is revealed in this article. There are special tax implications for RRSPs for non-residents depending on where they reside. For the purpose of this article, the focus will be on those who left Canada and reside in the United States and those who plan on emigrating … Continue reading

Can I reduce my Canadian taxes for foreign taxes paid on foreign employment income?

Question:

I have a non-resident corporation. Do I also need to open a HST account and why?

In Canada, it is required for a corporation to register a GST/HST account if you anticipate your sales to be more than $30,000 CAD. GST/HST is a sales tax that Canadian consumers must pay at the time of purchase on most products and services. As a corporation, it is your responsibility to collect GST/HST from … Continue reading

I’m a non-resident of Canada. Can I use a Canadian P.O. BOX as the registered head office for my Canadian corporation?

Most provinces will not permit the formation of corporations, which use a P.O. BOX for their head office address. A Canadian physical address is required.

I’m a non-resident of Canada. Can I still incorporate a company in Canada?

Yes you can. Forming and registering a corporation in Canada requires a registered head office in Canada. Also, most Canadian provinces require that the corporate directors be residents of Canada. However there are a few provinces such as British Columbia (BC), which allow non-residents of Canada to be directors of Canadian corporations. If a Canadian … Continue reading

If I am a non-resident of the US, do I need a social security number to file taxes?

As a non-resident of the US, you will require an ITIN (International Tax Identification Number) to file US Tax Returns. In order to receive this number you will need to fill out form W-7 and attach it with your US Tax Return for the year.

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 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

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 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.

Tag: non resident and international tax