Under the Canadian income tax system, an individual’s liability for income tax is based on his or her status as a resident or a non-resident of Canada.
An individual who is resident in Canada during a tax year is subject to Canadian income tax on his or her worldwide income from all sources. Generally, a non-resident individual is only subject to Canadian income tax on income from sources inside Canada.
The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.
The residential ties you establish or maintain in other countries may also be relevant.
When you calculate the number of days you stayed in Canada during the tax year, include each day or part of a day that you stayed in Canada. These include:
If you lived in the United States and commuted to work in Canada, do not include commuting days in the calculation.
As a non-resident of Canada, you pay tax on income you receive from sources in Canada. The type of tax you pay and the requirement to file an income tax return depend on the type of income you receive.
You are a deemed resident of Canada for tax purposes if you are in one of the following situations:
For more detailed information please call KWB at 780-466-6204 or email us by clicking here.
Thanks to David Wickenberg of KWB Chartered Accountants for providing this content.
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