Tax questions on various types incomes sourced from Canada/USA

[catmonk]

Hi,

My situation: Canadian citizen, non-resident of Canada & USA, currently resident of Malaysia.

As far as CRA is concerned, do I need to report the following incomes to CRA, and pay tax on those incomes?

1) Dividend incomes received from Canadian companies?
2) Interest incomes from Canadian banks such as GIC, maturity on Canadian bonds?
3) Capital gains from selling of Canadian bonds, Canadian stocks and Canadian mutual funds?

4) Dividend incomes received from US companies?
5) Interest incomes from US banks such as termed deposits, maturity on USA bonds?
6) Capital gains from selling of USA bonds, USA stocks and USA mutual funds?

Thanks in advance for all your help.
catmonk.

[ND]

Canada taxes based on residency and its residents need report worldwide income (may claim FCT on income sourced to treaty country). Once one ceases Cdn residency and reported so to CRA, as NR would be subject to 25% w/h tax (reduced applicable treaty rates) on Canadian source income, which would include interest and dividends paid by Cdn institutions. Capital gains are sourced by residency.

[catmonk]

Hi,

Thanks for the quick reply.

Two follow-up questions if I may:
1) The tax treaty between Canada and Malaysia subjects a resident of
Malaysia (& non-resident of Canada) to 15% withholding tax for
dividend and interest incomes sourced from Canadian sources.
As the dividend income from a Canadian company is my only Canadian
sourced income, I was told that the 15% withholding tax paid to CRA
will be my final tax obligation to CRA, i.e. I do not need to file a
non-resident tax return at all. Can anyone confirm that?

2) Not clear on what your reply of "Capital gains are sourced by residency"
mean?
I had bought a Royal Bank of Canada stock from a brokerage
company based in USA years ago when I was resident of USA. Now that
I am resident of Malaysia, if I sell the Royal Bank stock, do I need to
report and pay any capital gain tax to CRA?

Thanks,
catmonk.

[nelsona]

As ND pointed out, these other incomes would be taxed in Canada (or not) or by US (or not) by the terms of the treaty. Since you are familiar with those treaties (and which is beyond the scope of this forum), refer to the section on capital gains. It is likely that you would be taxed only in Malaysia, but that is for you to determine.

Remember, any holdings you had before leaving Canada were subject to deemed disposition when you left, likely making them non-taxable afterwards, regardless of source.