I have read the prior post on something silimar:
http://forums.serbinski.com/viewtopic.p ... 6a4f351dc7
but I believe I am in more complicated situation.
I was granted, say 100, RSUs by the company when I was in Canada in 2012.
I relocated to the US, working at the headquarter of the same company, and cleared all social ties with Canada, and accordingly I have obtained written notice from CRA in Feb 2013 as non taxable resident of Canada since Feb 2013.
Now, in May 2013, 20 RSUs vested in the U.S. The price at vest date is $50.
According to the US Canada Treaty, in particular, according to the 5th Protocol, the company withheld a portion of the vested stock after sell-to-cover.
To be concrete, the time of grant to time of vest is 200 days; the time of grant to time left Canada is 50 days. As such, 5 RSUs vested are solely taxable in Canada and another 15 are solely taxable in the US. Up to this point, everything consistent with my research on the treaty.
What makes me confused are the followings:
1) the company set 49.5% tax rate on the 5*50 taxable income in Canada. This rate is way too high. How should I file tax return to get some tax back? Should I file 2013 tax return in Canada since I anticipate the tax rate applied should be no more than 30%? Or should I file 2013 tax return in the US and claim all the tax withheld for Canada as tax credit in the US?
2) to make things more complicated, since I am now non-taxable resident of Canada, how can I file 2013 tax return in Canada for the income that is subject to Canada tax. And if I am correct, the tax rate on such income should be simply 30% because I am non-taxable resident? Or I actually should pay no tax on the income because I am already non-taxable in Canada?
3) moreover, I have to file 2013 tax return in Canada for the first 2 month's income I earned in the U.S.. For such amount of income, I am taxable resident of Canada. Now in May I have another amount of income and looks like I have to pay tax as non-taxable resident of Canada. Oh my! I am totally confused... ... :cry: :cry: :cry:
Folks, can you please share your experience or please advise how I can correctly pay tax to Canada? Many thanks in advance!
U.S. RSU withholding for CRA
Moderator: Mark T Serbinski CA CPA