I request your advice regarding my current situation. I'm a US citizen that came to Vancouver on Nov18, 2015 to work on a film project in Vancouver for a Canadian Employer. I am currently still working on the project and plan to leave Canada by March1st, 2016.
I own a home in the US. My wife and 2 kids (8 &11) still live there and I visit them twice a month. I believe I'm supposed to file my tax return for 2015 to the CRA due to my "Canadian income" and I'm wondering which "kind" of return to file. Resident or Non-resident. I have rec'd a T4 from my employer. I will have this same issue in 2016.
I was living in Vancouver on 31st Dec, 2015 (though less than 90 days), do I file "Resident"? I'm renting a room and have no other "residential ties" to Vancover. I always planned on this being a temp assignment even though my work-permit is valid till June 2016.
Canadian Taxes - Resident or Non Resident
Moderator: Mark T Serbinski CA CPA
Hi Toolguy,
Because you were physically working in Canada and being paid by a Canadian employer, you will likely have to pay tax on this income in Canada. You may however be able to exempt this income in Canada via treaty if you earned less than $10,000 OR a US employer was paying you AND you were in Canada for less than 183 days in any 12 month period.
Sounds like you are being paid by a Canadian employer, so you likely won’t be able to meet the second criteria. If you made less than $10K you should be able to exempt this income in Canada. If you don’t meet either of them, then the question is are you a resident or non-resident of Canada?
Because you have maintained your primary ties to the US and regularly visit your family back home, you are safe to file as a non-resident in Canada. And yes you will have to file a return in British Columbia (BC) as well. Just use the T1 General Non-Resident return and pay tax to Canada and BC based on normal federal and BC provincial tax rates. Some of your credits may be prorated. You will have to report this income on your US return as well, but can claim a foreign tax credit.
You said you were working on a film, are you an actor or are you providing other services? If you are an actor there are very special provisions in the tax treaty that will be applicable to you.
Because you were physically working in Canada and being paid by a Canadian employer, you will likely have to pay tax on this income in Canada. You may however be able to exempt this income in Canada via treaty if you earned less than $10,000 OR a US employer was paying you AND you were in Canada for less than 183 days in any 12 month period.
Sounds like you are being paid by a Canadian employer, so you likely won’t be able to meet the second criteria. If you made less than $10K you should be able to exempt this income in Canada. If you don’t meet either of them, then the question is are you a resident or non-resident of Canada?
Because you have maintained your primary ties to the US and regularly visit your family back home, you are safe to file as a non-resident in Canada. And yes you will have to file a return in British Columbia (BC) as well. Just use the T1 General Non-Resident return and pay tax to Canada and BC based on normal federal and BC provincial tax rates. Some of your credits may be prorated. You will have to report this income on your US return as well, but can claim a foreign tax credit.
You said you were working on a film, are you an actor or are you providing other services? If you are an actor there are very special provisions in the tax treaty that will be applicable to you.
Thank you so much for the clear information. Appreciate the effort and your time.
I don't think I'm exempt from paying Canadian taxes as I don't meet either of the Tax-treaty criteria. I don't mind paying the taxes.. just wasn't sure what my "eligibility" was.
I'm an animation professional so the "actor" provisions won't apply.
Thanks again.
I don't think I'm exempt from paying Canadian taxes as I don't meet either of the Tax-treaty criteria. I don't mind paying the taxes.. just wasn't sure what my "eligibility" was.
I'm an animation professional so the "actor" provisions won't apply.
Thanks again.