start filing taxes in Canada and officially become a Canadian resident for income tax purposes

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Jonhello
Posts: 35
Joined: Sat Oct 05, 2013 1:28 am

start filing taxes in Canada and officially become a Canadian resident for income tax purposes

Post by Jonhello » Sun Oct 11, 2020 8:48 pm

I am a US citizen while my wife and child is our dual citizen (Canadian and US). For more than 25 years we have been living in Europe. We own a condo there and most of our assets are in my name in the United States. About 3 years ago we purchased a home in Canada. We started spending about 4 to 5 months of the year in Canada and the rest of the year in Europe. My wife works part time for a Canadian organization and I work for a US organization. Our daughter attends school both in Canada (4 months) and in Europe (5 months). We intend to continue to travel back and forth but eventually (in 5-8 years) move full time to Canada.

My question is as follows:

- I am planning to apply becoming a Canadian resident sometime in the next 8 months. When should I start filing taxes in Canada and officially become a Canadian resident for income tax purposes?

- Can this be when:
1. I first apply for Canadian residency
2. I receive my residency and SIN
2. I start receiving an income from a Canadian employer

nelsona
Posts: 16549
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: start filing taxes in Canada and officially become a Canadian resident for income tax purposes

Post by nelsona » Tue Oct 13, 2020 6:23 pm

Your application os not dependent on your filing taxes, or even living in canada.

It is based on when you live in Canada more than anywhere else, which could be anytime you choose to spend more time here than anywhere else.

To KEEP your PR card, and eventually get citizenship, you will need to meet certain PHYSICAL presence tests, but none of these point to tax residency, if you have sufficient ties elsewhere.

Of course if, like your spouse, you earn Cdn-source income, you need to file Cdn taxes, regardless of your residence or immigration status.'
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Jonhello
Posts: 35
Joined: Sat Oct 05, 2013 1:28 am

Re: start filing taxes in Canada and officially become a Canadian resident for income tax purposes

Post by Jonhello » Tue Oct 13, 2020 6:36 pm

Thank you, Nelson.

It sounds like I can wait to file taxes in Canada until I actually start earning a wage in Canada. Right now, my residency for tax purposes is a little grey. I have a place in Latvia, all financial assets in the US (my wife has an RRSP, bank accounts but that is just a small percent of our overall assets) and employment in the states. On the other hand, we do own a house in Canada and our daughter attends school here part of the year (4 months in Canada and 5 months in Latvia).

In this case, it seems that I could decide when I start filing taxes in Canada (officially move for tax purposes) and right now that would be when I receive a work permit and start working in Canada.

Do you see any problems in my logic/plan?

nelsona
Posts: 16549
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: start filing taxes in Canada and officially become a Canadian resident for income tax purposes

Post by nelsona » Tue Oct 13, 2020 7:36 pm

I don't see any problems. Canada is one of the countries where you can apply to be a permanent resisnt without even the intention of living there (for the first 2-3 years), let alone pay taxes there.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Jonhello
Posts: 35
Joined: Sat Oct 05, 2013 1:28 am

Re: start filing taxes in Canada and officially become a Canadian resident for income tax purposes

Post by Jonhello » Tue Oct 13, 2020 8:00 pm

Thank you, Nelson, for your help. That gives clarity to one of the main questions we had going forward.

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