Immigrate to Canada focuses on Canadian strategies: It is currently the annual tedious tax season. For all Canadian immigrants, although it may seem a bit chaotic, it is also a good opportunity to organize past finances for better future planning. The editorial team at Worldway has specially compiled common questions encountered by immigrant friends during tax filing for your reference.
Common Question 3: Are there regulations regarding non-residents of Canada and deemed residents for tax purposes?
Non-residents of Canada who reside part-time, as well as individuals who spend less than 183 days in Canada within a year, are only required to pay Canadian personal income tax on income earned in Canada.
Individuals who are non-residents of Canada but stay in Canada for 183 days or more within a year are deemed residents and must pay Canadian personal income tax on their worldwide income for the entire year.
Non-residents of Canada and deemed residents may apply for Canadian tax refunds. Many types of income in Canada have had taxes withheld at the time of payment. The types of income that need to be reported for tax purposes in Canada mainly include: employment income in Canada; income from continuing business activities in Canada; taxable Canadian scholarships, grants, and research funds; and taxable capital gains from taxable Canadian properties that can be freely managed.
Common Question 4: What tax issues should be noted for those who purchase property in Canada but are not residents?
With the continuous rise of the domestic economy and a large number of students studying abroad, more and more people are considering purchasing property overseas. Tax issues related to this can be illustrated with examples.
Example 1:
Mr. X is a foreigner holding a 10-year multiple-entry visa to Canada (Visitor). After entering Canada in 2014, he purchased a property. In 2015, Mr. X rented this property to others, earning rental income. According to tax law, Mr. X must declare his Canadian income tax for 2015 this year. If Mr. X resides in Canada for more than 183 days in 2015, he must also report his worldwide income to the Canada Revenue Agency (CRA).
Example 2:
Mr. X requires the tenant to provide maintenance services for the property in exchange for a rent reduction of $300. As the property owner, Mr. X must include $3600 ($300 x 12 months) in his total rental income and also report $3600 as an expense for property maintenance services.
Worldway Reminder: In 2016, Canada’s tax filing policies underwent some adjustments. Immigrant friends can refer to the official website of the Canada Revenue Agency for detailed information before filing taxes. As a leading institution in the immigration industry with 18 years of experience, Worldway has a comprehensive customer service team dedicated to settling in, providing professional and attentive services that permeate every small detail of the immigration process to Canada, striving to help new immigrant friends quickly integrate into local life. For more consultation, call: 400-138-2929
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