Tag: non resident and international tax

I have a non-resident spouse, can I claim a spousal amount tax credit?

According to the CRA, in order for an individual to claim the spousal tax credit for a non-resident spouse, it is necessary that such non-resident person be supported by the individual. The question of support is determined on the facts of each case. In determining if the non-resident spouse is supported by the individual, the … Continue reading I have a non-resident spouse, can I claim a spousal amount tax credit?

Can a non-resident who owns a Canadian rental property choose a tenant to act as his agent in Canada?

No, a tenant who is renting the property (i.e. the payer) cannot act as the agent. A professional rental agent (e.g. property manager) or a family member/friend can be chosen to perform the responsibilities of the agent as long as the individual is a Canadian resident.

I have a vacation property outside Canada and it is never rented out. The cost is greater than $100,000 CAD. Do I have file form T1135 with my personal tax return for this property?

No, as long as the property is solely used personally, it is not required to be reported on T1135.

Do I or my children need to be Permanent Residents of Canada for me to open an RESP account and contribute?

In order to open an RESP account, the subscriber and the beneficiaries (children) do not need to be Permanent Residents of Canada. However, the beneficiary is required to be a Canadian resident for tax purposes and have a valid SIN. For more information on residency status, please visit CRA page on Residency status If you … Continue reading Do I or my children need to be Permanent Residents of Canada for me to open an RESP account and contribute?

Who can claim the Overseas Employment Tax Credit?

In order to claim the Overseas Employment Tax Credit, individuals are required to be a Canadian resident or deemed resident at any time in the year AND earn employment income from performing at least 90% of the work outside of Canada for more than six consecutive months with a specified employer. As well, the employment … Continue reading Who can claim the Overseas Employment Tax Credit?

What’s the tax payable by non-residents on the sale of Canadian real estate?

If real estate is sold by a non-resident, 25% of the gross sale proceeds is obligated to be withheld by the purchaser and remitted to the Canada Revenue Agency (CRA). The withholding tax amount can be reduced if the vendor acquires a Certificate of Compliance from CRA on time. By filing the form, the withholding … Continue reading What’s the tax payable by non-residents on the sale of Canadian real estate?

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

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

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

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 Deferral of Tax Payment on RRSPs for Non-residents

Employer Identification Number (EIN) for companies in Canada, explained

An Employer Identification Number (EIN) is required for Canadian companies that do business in the US. If you have a business in Canada that is connected to the US, even in a small way, make sure that you read this article!

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

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.

Pin It on Pinterest