Becoming a Non-Resident of Canada (Part 1)
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- Опубликовано: 11 июн 2024
- This is part 1 of a 3-part series which explores non-residency in Canada. In this video, the potential impact of primary ties, secondary ties and form NR73 on your status are discussed.
0:25 - 1. How to Become a Non-Resident of Canada
1:25 - 2. Pros and Cons of Form NR73
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Disclaimer:
The information provided in this video 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. All figures and dollar amounts are used for example purposes only. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.
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Thank you Allan, I really appreciate a lot your information. Always clear and the new style of videos are very good quality!
Thanks very much for sharing such a great piece of info.
Thank you for the information!
Can you give the definition of resident and the difference between residency.
Hi Allan! Thanks for the very concise video. New subscriber to the channel :)
My wife and I want to emigrate from Canada but I have a personal holding company with 6 rental properties (homes) with a value around 4M. I am the only shareholder. Would I need to dissolve the Holdco before being able to emigrate? Or can I keep it in place?
Thanks!
Thanks for the videos. Very good.
With the covid, many employers are moving to home office, specially on the tech industry.
I am researching the possibility of keeping my job here in Canada and move to Portugal. I cannot find a clear answer if the "non resident" status would be possible for me. (Assuming the only ties I would like to keep are the tfsa and rrsp accounts, without new contributions).
Is it possible?
Thanks Allan!
I was granted the immigrant PR Visa, but I did not do my first landing yet. My aim is to land in Canada for a couple of weeks and return to my current country of residency for a year or 2, before returning back to Canada permanently. Should I be paying taxes on my incomes within these 2 years when I am abroad ? Does the non-resident status applies on my straight from the beginning? Note that I won't be owning any properties nor have my family in Canada during these 2 years. Your response is appreciated :)
Asking for a friend. He has been abroad for over a year now. He never planned on emigrating, it was only meant to be a short vacation, but now he is attending school abroad. And will be studying therer for at least another year.
He doesn't pay rent in his old apartment anymore, but his name is still on the lease.
What will happen to his bank accounts and credit cards if he declares non-residency?
Hi Allan,
I am a Canadian citizen who has been working abroad for the last four years. I have not filled out a NR73 form and plan to follow your tip and simply file a Departure Tax return (I believe I will qualify as a non resident given my only primary tie to Canada is my driver's licence). My question is, given I have already been working abroad for four years and plan to continue to do so for at least a couple more years, when is the best time to file the Departure Tax form? Should I be filling this every year before April 30th, or should I simply wait until I finally decide to return to Canada to reside?
Thank you for taking the time to respond,
Kathleen
I have question in regards to a fractual residence, do you have and videos about this?
Hi Allan, can I rent-out my home to a friend of my son to remove one of the primary ties?. My son is over 18 years old. He can still ocuppy the home?. or this is a restriction from cra perspective. Thanks
Question: what if you still work remote for a company that is in Canada? Can you be a non resident?
Thank you Allan for answering a number of questions. I am 65 years old and have recently retired. I have moved to the Caribbean for an indefinite number of years. I don't plan to work anymore, so I won't be receiving foreign income. I plan to live on my private pension along with my CPP and OAS pensions and am paying taxes on those. I do still have a driver's license, bank account, RRSP, TFSA, investment account and Health Card in Ontario, but no property, car or other possessions (other than winter clothes that I keep with my son). I can get health coverage from the country I'm moving to, so giving up the Health Card isn't a sticking point. But the 25% withholding tax as a non-resident is a higher rate than I'm currently paying, which seems like a penalty to me if I become a non-resident. Can I choose to remain a factual resident of Canada to reduce my taxes? I don't see any benefit for me to declare non-residency, even though I suppose by the definition I would be considered non-resident after a year of living elsewhere.
It appears that you will become a non-resident of Canada, because:
- You are permanently leaving Canada
- You will have no primary ties to Canada
- You only have a few secondary ties to Canada
Cancel your Health Card before you leave Canada. To reduce the 25% withholding tax deduction from Canadian pension payments, fill out form NR5 and submit this completed form to the CRA. Once the form is approved by the CRA, the withholding tax rate will be reduced. With an approved NR5, you must file a Section 217 return each year with the CRA.
What would consider as dependents in Canada?
Hi Allan
thanks for your RUclips video about Canada residency status, I got your contact from their, please if you can just answer my question that will helpfull.
I moved to US for work under the TN visa, I do have US social security number and I pay federal and State taxes there, I have a US driver license too
For my previous taxes declaration, Quebec asked me to pay taxes as a normal resident, then I did fill out the RN73 and I got a status as deemed non-residents, the ARC told me I don't have to produce any tax declaration jut my spouse needs to declare the total income including mine, is that true to pay taxes on both sides US and Quebec while my family didn't move with me ?
thanks for your help.
I don't understand why you have to lose all your financial ties to Canada if you are a non-resident. You are still Canandian. Why can't you have a home or other financial. tie there?
Can i have a dual full time job, remote job in Canada as a Canadian citizen and another on a TN visa in US while physically being in US.
Hi thanks for the video. I have a question about filing the departure tax return. Can I file it early like when I leave or do I have to wait until the following year. And where can I find the forms for this... couldn’t find much on CRA website. Thanks
Hi Jeff, you will have to wait until the following year. Complete the T1 General Return, and applicable departure schedules (e.g. T1161, T1243).
I'm leaving in one week to my country ..I'm way less then 25000 annual income I wasnt on risp or any plan or assets I sold my car for 2000 wht should i report or which department can i contact also is it necessary to do it while u r in canada or from my own country also plz answer I'm really confused and worried thanks
Hi Maham,
If you are leaving Canada, and:
1. Do not have a spouse, children, or a home (either rented or owned) in Canada; and
2. You have minimal secondary ties to Canada
Then you can claim non-resident status with the CRA. To accomplish this, file a Departure Tax Return with the CRA. This return is due by April 30 of the year following the year of your departure from Canada.
Hi, do I have to return the sin card to CRA for declaring non resident
?
Hi Eliza,
No, you do not have to return your sin card to the CRA when declaring non-residence.
Hi, Allan , thank you for your reply. It’s useful.
Hi Eliza Lam,
It's my pleasure. Visit our website for more information at madanca.com/.
HI Allan thanks for the info . I left Canada to work in the US 4 years ago under Nafta agreement, but kept filing my taxs both in Canada and US every year.. now live overseas and i want to switch to non resident status , i have only Driver license , health card, and my banking still in Canada. Should i file any form ? what do you suggest ?
Hi Paul, cancel your driver's license and health card. Also, file a departure return with a departure date of January 1, 2017. By doing so, you will establish your non-residency status with the CRA. I can file a departure return for you.
Thanks for the reply Allan, i would like to reach you by phone to discuss it and perhaps to proceed for the non-residency status . what will be best number to reach you.
Please contact me by email amadan@madanca.com or by phone 905-268-0150
Hi, if u file double taxation how much is it total fron your total earnings?
@@AllanMadanCA Hi Allan
thanks for your RUclips video about Canada residency status, I got your contact from their, please if you can just answer my question that will helpfull.
I moved to US for work under the TN visa, I do have US social security number and I pay federal and State taxes there, I have a US driver license too
For my previous taxes declaration, Quebec asked me to pay taxes as a normal resident, then I did fill out the RN73 and I got a status as deemed non-residents, the ARC told me I don't have to produce any tax declaration jut my spouse needs to declare the total income including mine, is that true to pay taxes on both sides US and Quebec while my family didn't move with me ?
thanks for your help.
I have no ties to Canada whatsoever asides from a driver's licence and a chequing bank account with less than twenty dollars in it and which I have not even touched for the past 7 years. Would I be required to pay the government any tax?
Assuming that you don't live in Canada, and only have a few secondary ties to Canada that you specified, then you will not be liable for tax in Canada on income earned outside of Canada.
Allan Madan thank you for your reply. Much appreciated. If I bring with me a lot more than 10000 dollars to the airport in cash (which is my work savings), will they tax me on them?
No, the cash won't be subject to Canadian income tax. BUT, you will need to declare it with Canada Customs.
@@AllanMadanCA hi alla, i thought you will be tax as long as you are still a resident of canada? I am a canadian. Just got a o job offer to work as a nurse in new york. Im single and i dont have a strong ties in canada. I only have my bank account, drivers license, credits. Should i apply for non resident? What will happen to my drivers license if it was cancelled? I dont want to do driving exam anymore in the US. Pls. Advise.
Hi@@hoyeshibg1370 ,
According to the US-Canada tax treaty, you are a resident of the country where your permanent home is located. A permanent home can either be leased or owned. If you have a permanent home in both Canada and the US, then you are a resident of the country where your personal and economic ties are strongest.
It appears that you have relocated to the US and do not have a permanent home in Canada. As a result, you will be a tax resident of the US and a non-resident of Canada for tax purposes. Therefore, your US income will be taxable in the US only and not in Canada. You can keep your Canadian driver's license and still be a non-resident of Canada as per the Permanent Home Test in the tax tax treaty.
Further after one has left Canada after filing departure return.... And he visits Canada for a few days or a month........is he required to submit the return again?
No
Here's how to become a non resident. Just leave and don't pay them any taxes if going for 10 years or longer. They can't do anything about it by then
What if you want to visit canada within that time
@@vindictii you have to weigh it up. But I say why would you want to visit a shithole like canada in the first place
Is it still relevant today ???????????
Yes