Hello, I am dual citizens and the US is my primary residence. I was deemed by the government of Canada none-residents back in 2005. Can I visit and stay in Canada for more than 6 months? I receive income from the US and pay taxes to US Government. I am worried if I stay longer than 6 months, I will have to pay Canadian taxes as well. Please advise.
Thanks
Taxation
Moderator: Mark T Serbinski CA CPA
Deemed residency
Not the clearest Subject line, eh?
Canada has a regulation that anyone who spends more than 183 days in a calendar year in Canada, even as a tourist, is deemed a resident, subject to taxation on worldwide income.
Fortunately, since you are a US citizen AND maintain your residence in US, you fall under the US/Canada treaty, and the residency article which supersedes this regulation.
To avoid being deemed a Cdn tax resident under the 183-day rule, you need to maintain CLEAR indication that US remains your tax home: full-time available house, family, job, social ties, etc, should CLEARLY outweigh those ties in Canada.
Do they?
Canada has a regulation that anyone who spends more than 183 days in a calendar year in Canada, even as a tourist, is deemed a resident, subject to taxation on worldwide income.
Fortunately, since you are a US citizen AND maintain your residence in US, you fall under the US/Canada treaty, and the residency article which supersedes this regulation.
To avoid being deemed a Cdn tax resident under the 183-day rule, you need to maintain CLEAR indication that US remains your tax home: full-time available house, family, job, social ties, etc, should CLEARLY outweigh those ties in Canada.
Do they?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best