In Canada, residents and non-residents have different requirements when it comes to taxes. You are considered a non-resident if you live outside of Canada and not considered a resident of the country. Also, if you don’t have any significant ties to Canada, you can be considered tax exempt. Ties such as having a Canadian spouse, dependents living in Canada or owning a home within Canadian borders. Below are some of the responsibilities that come with being a Canadian non-resident.
Tax Responsibilities and Obligations
Non-resident taxation in Toronto, Ontario and other Canadian provinces requires that you pay tax on any source of income that comes from Canada. Depending on the type of income received, will determine what you are taxed.
Income
Common types of income that can be considered for taxation include annuity payments, retirement monies, pension payments and rental payments. In order to make sure you are properly taxed; the government must know the status of your non-residency and the country where you live currently.
Filing
If it is determined that you do have to pay tax or are owed a refund, you must file an income tax return. Certain instances such as Canadian pension income would require you to file. The tax deadline to file your return is April 30.
If you are a non-resident, you are exempt from filing a tax return in certain circumstances. Contact your tax professional to review the requirements.
Benefits
As a non-resident, you are not entitled to any Canadian benefits. In some situations, if your spouse is a Canadian resident you can be entitled to certain benefits per the law.
Seek a Tax Professional
In order to determine your full tax responsibility, contact a professional tax consultant in Canada. They are well versed in minimizing your tax obligations and can give you full service before filing.
If you need advice regarding non-resident taxation in Toronto, Ontario, contact The Taxperts Group.
