Tax on foreign investment income

hsampy · Post by **hsampy** » Sat Jan 13, 2007 4:02 pm

Hi,

I am a Canadian PR living in Canada. What are the tax implications of any profits over investments I make in a foreign country (non- US) when I decide to bring the investment(with profits) back to Canada?

Would this differ for US investments?

Thanks

nelsona · Post by **nelsona** » Sun Jan 14, 2007 10:46 am

There is no such thing as 'bringing back' profits to Canada or US. Profits earned ANYWHERE are taxable in your country of residence REGRDLESS of where they are earned or where you keep the money.

You cannot hide money. It is illegal.

hsampy · Post by **hsampy** » Sun Jan 14, 2007 2:11 pm

Ok, no, I wasnt planning on hiding any money....

I was wondering if my country of citizenship, where the money would be invested, would be the place I have tax obligations for.

nelsona · Post by **nelsona** » Sun Jan 14, 2007 6:25 pm

You may have tax obligations in the country of investment, but you would ALSO have tax obligation in Canada, regardless

nelsona · Post by **nelsona** » Sun Jan 14, 2007 6:30 pm

...you could also have taxobligation in your country of citizenship, if, like for example US, your home country taxes you regardless of where you live.

I have seen to many posts where people mistakenly think that they aren't taxed in Canada or US unless they 'bring the money' into the country. This is a misconception.