When do I become tax resident of Canada?

[HTS_QC]

Hi,

So, I am planning to enter as visitor in June, apply for SS, maybe get an OWP by October and say I become PR in Jan 2024.
If I become PR in Jan 2024, do I still need to submit a tax return for 2023?
In 2023 I will have UK income (prior to moving to Canada, Quebec) and some very small interest income in the UK (<$200) while in Canada as a visitor.

Also, I have money in a UK investment account where I have shares (a Vanguard global ETF). I will keep the money invested in UK until I become PR, then sell the shares in 2024 and buy the same ETF in Canada. Would I need to calculate the capital gains from the day I landed in Canada as a visitor? or from the day I became PR?

 

[canuck78]

Hi,

So, I am planning to enter as visitor in June, apply for SS, maybe get an OWP by October and say I become PR in Jan 2024.
If I become PR in Jan 2024, do I still need to submit a tax return for 2023?
In 2023 I will have UK income (prior to moving to Canada, Quebec) and some very small interest income in the UK (<$200) while in Canada as a visitor.

Also, I have money in a UK investment account where I have shares (a Vanguard global ETF). I will keep the money invested in UK until I become PR, then sell the shares in 2024 and buy the same ETF in Canada. Would I need to calculate the capital gains from the day I landed in Canada as a visitor? or from the day I became PR?

Will partially depend on your status in 2023. Your spouse will need to declare your international income on their taxes. are you trying to work while you are a visitor? If so, does your employer have offices in Canada? Have clients or customers in Canada? Are you a UK citizen?

 

[HTS_QC]

Not planning to work in Canada while I am a visitor, I will resign from my UK job before leaving the UK in June '23 and will take a career break until I get PR (or OWP). My only income while being in Canada as a visitor will be some very small bank account interest income in the UK (<$200).

Why does my wife need to declare my income? Might sound like a silly question, but in UK taxation is by individual, not by household/family. Will she be taxed for my income?

 

[janfly]

Hi,

So, I am planning to enter as visitor in June, apply for SS, maybe get an OWP by October and say I become PR in Jan 2024.
If I become PR in Jan 2024, do I still need to submit a tax return for 2023?
In 2023 I will have UK income (prior to moving to Canada, Quebec) and some very small interest income in the UK (<$200) while in Canada as a visitor.

Also, I have money in a UK investment account where I have shares (a Vanguard global ETF). I will keep the money invested in UK until I become PR, then sell the shares in 2024 and buy the same ETF in Canada. Would I need to calculate the capital gains from the day I landed in Canada as a visitor? or from the day I became PR?

Hello,

There are few ways to see your case:

1. You have a family tie in Canada since your spouse is living here. When you have a primary family tie in Canada, you are considered as a resident and report worldwide income in your income tax return irrespective of your immigration status and days your were in Canada.

2. You must file your tax return individual basis and pay taxes. You might disclosed your spouse details, marital status and spousal net income on your tax return however, you both will file a separate tax return.

3. In your case, you must file your 2023 tax return. Check your 2022 status as well since the CRA will request your residential status while assessing your first year tax return in the future.

If you have a specific questions or tax planning in Canada, let me know.