Cross Border Tax Accountant in Toronto

Cross-border tax advice may be useful if you are moving into or out of Canada, earning income outside Canada, owning foreign investments or property, operating an international business, working temporarily in another country or continuing to receive Canadian-source income after becoming a non-resident. The tax issues depend on your residency, income sources, assets and the countries involved.

Canadian tax residency is based on the facts of your situation, including your residential ties to Canada and the circumstances surrounding your move. If another country also considers you a tax resident, an applicable tax treaty may contain residency tie-breaker provisions. Residency is important because Canadian residents are generally taxed on worldwide income, while non-residents are generally subject to Canadian tax on certain Canadian-source income. Read our Canadian tax residency guide for additional information.

Canadian residents generally report income from worldwide sources on their Canadian income-tax return. Foreign employment income, investment income, rental income, business income and other foreign-source amounts may therefore need to be included. Foreign taxes already paid may be relevant when calculating an available foreign tax credit. Canadian personal filing can be coordinated with our personal tax accountant services in Toronto .

Canada has tax treaties with many countries. Depending on the treaty and type of income, treaty provisions can help determine taxing rights, residency, withholding rates and possible relief from double taxation. Foreign tax credits may also allow qualifying foreign income or profit taxes paid to another country to be considered when calculating Canadian tax. These rules do not automatically remove every tax or filing obligation, so each situation should be reviewed individually.

Certain Canadian taxpayers who own specified foreign property may have additional CRA information-reporting obligations when the applicable requirements and cost thresholds are met. Foreign investment accounts, shares, rental property and other assets can require different analysis depending on how they are held and used. Foreign-property reporting is separate from the requirement to report taxable foreign income, so both issues may need to be considered.

Potentially. When an individual stops being a Canadian tax resident, certain property may be treated as though it were disposed of at fair market value immediately before departure. This deemed disposition can result in taxable capital gains, commonly referred to as departure tax. Important exclusions and special rules apply. If you are planning an international move, our tax planning services in Toronto can help review relevant Canadian tax considerations before the move.

Becoming a non-resident does not necessarily end every Canadian tax obligation. Canadian-source rental income, pensions, employment income, business income, investments and certain property transactions can continue to create Canadian tax, withholding or filing requirements. The applicable rules depend on the type of income and any relevant tax treaty. Our non-resident tax services provide more focused support for Canadian non-resident obligations.

Yes. Businesses operating internationally may need to consider corporate residency, permanent establishment, foreign business income, withholding tax, payroll, transfer pricing and applicable tax-treaty provisions depending on where and how they operate. Canadian corporations with international activity should also coordinate these issues with their Canadian year-end filing. Our corporate tax return services can support the Canadian corporate filing side.

Canada–U.S. tax situations can involve additional U.S.-specific income-tax and information-reporting requirements. Because those matters can require more detailed U.S. tax analysis, Filing Taxes has a dedicated U.S. tax accounting services page for individuals and businesses whose cross-border situation specifically involves the United States.

Yes. Owning, renting or selling property in another country can create income-tax, capital-gains, withholding and reporting considerations in more than one jurisdiction. Similarly, non-residents who own Canadian real estate can have continuing Canadian tax obligations. Property-related Canadian tax matters can be coordinated with our real estate tax accountant services .

Cross-border tax fees depend on the complexity and scope of the work rather than one fixed price for every client. Costs can vary based on residency analysis, countries involved, number of returns, foreign income, investments, property, corporations, information-reporting requirements, prior-year issues and tax-authority correspondence. Filing Taxes can review your circumstances and provide a quote based on the services required. If the CRA has already contacted you, our CRA audit and review assistance may also be relevant.