Non-Resident Taxes – Not A Matter Of Worrying With Us!
With today’s globalized workforce it is not uncommon to work in a country that you are not a resident of. If you are a non-resident of Canada and wonder if you have any tax obligations and filing requirements to Canada, you have come to the right place. We will make sure that you never have to face double taxation or penalties. Our team of Canadian non-resident tax specialists at Filing Taxes is adept at ensuring you comply with both individual and business tax regulations while taking advantage of incentives and credits.
Non-resident tax means twice the amount of tax regulations and compliance requirements, which can prove to be time-consuming and costly. Hence, as professional non-resident tax service providers, we can assist you with all tax compliance requirements whilst minimizing your worldwide tax. Our unique tax-efficient structure will be constructed for your needs.
Do Non-Residents have to file taxes in Canada?
The Canadian tax rules that apply to non-residents of Canada are different from the tax rules that apply to Canadian residents. Hence, the residency status of a taxpayer is the first and most relevant factor to consider in determining a taxpayer’s Canadian tax obligations.
If you are a non-resident of Canada and earning income in Canada, you may have a tax obligation. The type of tax you pay and the requirement to file an income tax return depends on the type of income you receive. Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax.
As a rule of thumb, a non-resident generally pays 25% in taxes. If income tax treaties are signed between Canada and the home countries of the non-residents, non-residents may rely on the treaties to reduce or eliminate their Canadian taxes. The tax rate can come down to 15% if there is a tax treaty between the two countries.
What is a Non-Resident for tax purposes?
You’re a non-resident of Canada for tax purposes if you: normally, customarily, or routinely live in another country and are not considered a resident of Canada. You don’t have significant residential ties in Canada, or you lived outside Canada throughout the year, or your stay in Canada was less than 183 days.
Below is a sample list of non-residents who generally require our non-resident tax services:
- Individuals leaving or entering Canada
- Professionals or consultants earning fees for services rendered in Canada
- Expatriate foreign executives and employees working in Canada
- Foreign individuals or corporations carrying on business activities in Canada
- Foreign individuals with residential ties in Canada
- Foreign owners of Canadian rental properties
- Non-resident purchasers or sellers of real property in Canada
- Temporary foreign actors, directors, performing artists, and workers in film and entertainment occupations
- Deemed Canadian residents
- Foreign corporations with subsidiary corporations in Canada
- Non-resident trusts with Canadian resident contributors and/or Canadian resident beneficiaries
- Non-resident shareholders of Canadian corporations
- Partnerships with non-resident partners
Our Canadian Non-resident Income Tax Compliance, Tax Planning, and Consulting Services
- In-depth analysis of residency status for Canadian tax purposes by taking into account the primary/ secondary residential ties and other relevant residential factors
- Preparation of Canadian T1 personal emigration/immigration income tax returns for taxpayers departing from or entering Canada
- Preparation of Canadian income tax returns for non-resident individuals/corporations doing business in Canada
- Preparation of elective non-resident tax returns for non-residents with Canadian sourced income
- Preparation of GST/HST returns for non-residents owning real estate rental properties
- Preparation of tax forms for a reduction in withholding taxes for non-residents
- Customized exit/entry tax planning and analysis of Canadian tax consequences for Canadians tax residents emigrating (departing) from / immigrating (entering) to Canada
- Consultation and analysis of Canadian tax consequences to foreign professionals/temporary workers/athletes/entertainers
- Consultation and advisory on investments in Canada including the purchase of the real estate in Canada by non-residents
- Representation and Liaison with the Canada Revenue Agency (CRA)
You can feel confident choosing Filing Taxes as your go-to resource for all of your individual and business-related non-resident tax services. We know the ins and outs of the exhaustive maze of the Canadian tax system. We handle all aspects of your non-resident tax return preparation and filing so that you can breathe easy and relax, wherever in the world you may be.
What is non-resident tax Canada?
As a non-resident, you are subject to Canadian income tax on most Canadian-source income paid or credited to you during the year unless all or part of it is exempt under a tax treaty. Tax calculated on the income of a non-resident of Canada is known as non-resident tax Canada.
How are non-residents taxed in Canada?
Generally, Canadian income received by a non-resident is subject to Part XIII tax or Part I tax. If you own a business in Canada or if you earn money from a job in Canada, your income is subject to the part I tax. Part XIII tax applies to dividends, rental payments, old-age pensions, retirement income payments, and annuity payments as well as other types of investment income.
Can non-resident Canadians invest in Canada?
Yes, you can invest in Canada as a non-resident. There are certain restrictions on a non-resident but generally, it is easy for non-residents to invest in Canada.
Non-resident Canadians, even if they are Canadian citizens, have limited investment options in Canada so it will be very important to ensure your Canadian financial institution correctly lists your residency status. If they do not, you will not have been subject to the required tax withholding and you will receive Canadian resident tax slips, which usually trigger a letter from the Canada Revenue Agency to file a tax return.
Can a non-resident own a Canadian corporation?
Yes, you can. Non-residents who want to open Canadian companies have several options to match their budgets. They can set up companies and manage them from abroad or by moving to Canada. Forming and registering a corporation in Canada requires a registered head office in Canada.
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