CANADA - UAE Tax Treaty
Join Date: Jul 1999
Location: Stockholm / Sweden
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Yeah - that's right - but that means: You must sell Your property in Canada rightaway, and make sure, that you have no spouse, children whatever left over there - otherwise it can get REALLY nasty;
we have a colleague from america, who was taken into custody rightaway after arrivin' in JFK - for allegedly tax-fraud - he obviously didn't pay his dues on US-world-wide income & his ex-missus turned him in - he is now facing a massive 6-digit-tax-evadsion-bill & some court hearing for that - bad luck
note: never mess with the INS !! You've been warned, there's zero tolerance!
we have a colleague from america, who was taken into custody rightaway after arrivin' in JFK - for allegedly tax-fraud - he obviously didn't pay his dues on US-world-wide income & his ex-missus turned him in - he is now facing a massive 6-digit-tax-evadsion-bill & some court hearing for that - bad luck
note: never mess with the INS !! You've been warned, there's zero tolerance!
Join Date: Apr 1999
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The first issue is that Canada does not have a 'defined' method for deeming someone resident or non-resident. It depends on a series of variable factors and each case is looked at individually.
CCRA will look at all of your ties to Canada. For instance, if you own a home and it is empty or rented to a family memeber than you will most certainly be deemed a resident. If the home/property (or properties) are rented arms-length (ie. not family) then they are considered investments. You pay tax on any profit and that is it.
If you keep your health card then that would also deem you a resident. So the trick is to rid yourself as of as much as you need to in terms of ties to Canada. If you plan to rent property then it would be OK to keep a bank account (for example) to have the rental cheques deposited to. Otherwise close the bank account.
After we left we continues to get the family allowance cheques (all $8). We sent them bacj to CCRA with an expanation that we had left the counrty and they nicely sent us a letter saying we were considered non-resident and would not be recieving future cheques - VOILA - in writing, from the CCRA that we are non-residents
CCRA will look at all of your ties to Canada. For instance, if you own a home and it is empty or rented to a family memeber than you will most certainly be deemed a resident. If the home/property (or properties) are rented arms-length (ie. not family) then they are considered investments. You pay tax on any profit and that is it.
If you keep your health card then that would also deem you a resident. So the trick is to rid yourself as of as much as you need to in terms of ties to Canada. If you plan to rent property then it would be OK to keep a bank account (for example) to have the rental cheques deposited to. Otherwise close the bank account.
After we left we continues to get the family allowance cheques (all $8). We sent them bacj to CCRA with an expanation that we had left the counrty and they nicely sent us a letter saying we were considered non-resident and would not be recieving future cheques - VOILA - in writing, from the CCRA that we are non-residents
Join Date: Sep 2007
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Wrong Info
Cyberguy is out to lunch, you don't have to sell you property in Canada. If you rent it out you have to declare the rental income however if you have a mortgage it becomes a tax deduction and the two cancel each other out therefore no tax paid. Call John Mott Accounting in YYZ to sort it out and answer any questions. He specializes in Non Resident tax applicants.
Cheers
Cheers
Join Date: Dec 2007
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Living over here now 5 years and only traveling back to Canada maybe once a year, after 2 years away on entering Canada I show my resident visa and I tell customs I live in the UAE. They tell me I'll a non-resident and no forms to fill out.
Join Date: Mar 2008
Location: Canada
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Non -Resident Status
This question is for anyone who has gone this route. Would it be advisable to have an International Tax Lawyer formilarize your Non-Resident Tax Status rather than an Accountant? Significant cost difference!
Scenario, wife and son won't be coming over for about a year. Schooling involved. Finishing High School.
Thanks
Scenario, wife and son won't be coming over for about a year. Schooling involved. Finishing High School.
Thanks
Last edited by JETZ Tech; 3rd Jul 2008 at 12:58. Reason: Spelling
Join Date: Apr 1999
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Hmmmm......I don't know about the lawyer vs accountant. But, in your case, if the family is still in Canada then you are still a resident and your first years income will be taxable.
If the lawyer can guarantee you that he can, somehow, get you out of the tax requirement then he is well worth it.!!!!!!
If the lawyer can guarantee you that he can, somehow, get you out of the tax requirement then he is well worth it.!!!!!!
Join Date: Aug 2000
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If you are outside of the country for over 6 months (182 days I believe is the exact figure) the your world wide income is still taxable but at a reduced rate, 25% i believe.
Once you declare yourself a non-resident, then no tax issues.
I consulted an accountant to handle my case, went smoothly, never questioned about it since.
As for investments, i.e. RRSP's etc, there is a 25% tax treaty in pace with the UAE. You have 2 choices; cash them in when you retire, or cash them in when you are living in the UAE and pay 25%. One note is that if you do decide to keep them while abroad, you cannot contribute to them at all.
Once you declare yourself a non-resident, then no tax issues.
I consulted an accountant to handle my case, went smoothly, never questioned about it since.
As for investments, i.e. RRSP's etc, there is a 25% tax treaty in pace with the UAE. You have 2 choices; cash them in when you retire, or cash them in when you are living in the UAE and pay 25%. One note is that if you do decide to keep them while abroad, you cannot contribute to them at all.
Join Date: Feb 2005
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Non-Resident status
Please look at the following document from Revenue Canada:
T4056 - Emigrants and Income Tax - 2007
I would suggest not trying to get a non-resident status through a lawyer. I tried this way and was denied....This is a very unpleasant uphill battle with Revenue Canada (also expensive).
Just follow the guidelines and you will have no problem. I have become non-resident from Canada twice. The first time was very difficult, for the reasons given above. The second time was a piece of cake.
I hope this help.
T4056 - Emigrants and Income Tax - 2007
I would suggest not trying to get a non-resident status through a lawyer. I tried this way and was denied....This is a very unpleasant uphill battle with Revenue Canada (also expensive).
Just follow the guidelines and you will have no problem. I have become non-resident from Canada twice. The first time was very difficult, for the reasons given above. The second time was a piece of cake.
I hope this help.
Join Date: Mar 2008
Location: Canada
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Tax Lawyer versus Accountant
Layover,
May I PM you as I am in a similar situation as yourself in regard to Non Resident status. Nixed the Lawyer and contact John Mott for meeting.
Thanks
May I PM you as I am in a similar situation as yourself in regard to Non Resident status. Nixed the Lawyer and contact John Mott for meeting.
Thanks
Join Date: Dec 1999
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Canada Tax
Hi Guys!
Is there any Canadian citizen out there who's permanent residence is still Canada but is working for Etihad or any middle eastern airline? Are you declaring your world income and paying taxes in Canada? Does Etihad give out a Tax certificate or not?
As of now I'm working for an airline in a country with tax treaty with Canada and there are no issues whenever I file my world Income tax return with CCRA.
I'll surely appreciate if anyone can enlighten me on this matter. Happy landings!
Is there any Canadian citizen out there who's permanent residence is still Canada but is working for Etihad or any middle eastern airline? Are you declaring your world income and paying taxes in Canada? Does Etihad give out a Tax certificate or not?
As of now I'm working for an airline in a country with tax treaty with Canada and there are no issues whenever I file my world Income tax return with CCRA.
I'll surely appreciate if anyone can enlighten me on this matter. Happy landings!
Join Date: Jan 2007
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Canadian Tax John Mott
Would love to know how you got on with John Mott? I am going to try and contact him when he returns from his vacation next month. Do you reckon he was worth it? Would really appreciate your thoughts!
Last edited by sandbunny; 10th Aug 2008 at 16:23. Reason: Typo
