I have been working for a California based employer since 2019 and have been a Canadian tax resident all this time. I became a Canadian non-resident in 2021.
I was reading about Canadian treatment of RSUs and found this: https://home.kpmg/xx/en/home/insights/2 ... 1-162.html
It seems like even as a non-resident, unvested RSUs need to be sourced to Canada when they are vested? Does anyone know more about this?
I am not sure if the US-Canada tax treaty offers any relief in this regard.
Can CRA tax unvested RSUs
Moderator: Mark T Serbinski CA CPA
Re: Can CRA tax unvested RSUs
It seems like the answer to this yes, they can. If you have Canadian sourced income, you have to use a days worked calculation from grant date till vesting date and give Canada.
The calculation would look something like this:
(Days worked in Canada / Days worked from grant date till vesting date) * (FMV of vested stocks)
So, even as a non-resident, you might owe Canada tax
The calculation would look something like this:
(Days worked in Canada / Days worked from grant date till vesting date) * (FMV of vested stocks)
So, even as a non-resident, you might owe Canada tax
Re: Can CRA tax unvested RSUs
You can find more information here: https://home.kpmg/xx/en/home/insights/2 ... tives.html under General deductions from income
Re: Can CRA tax unvested RSUs
Nelsona, any thoughts here? Do you know about how unvested RSUs would be taxed for a non-resident of Canada and if the treaty offers any relief in that regard?