Canadian taxation on foreign property and income...I find it very confusing.. are we supposed to hire lawyers and accountants to deal with these issues? I’m sure they charge a lott of money. I have a house and a car and shop in my home country, each exceeds 100K cad , will I be paying Canadian taxes on them when I become pr?? And out of curiosity, why do residents pay taxes on property or income they earn outside Canada especially if they had it before becoming residents. Thank you
Taxation on foreign property and income- confusion
- Thread starter Tokibaee
- Start date
Cannot answer specific tax law questions but once you become a PR and a tax resident then why would any country not expect its residents to declare all WW income else someone could live in the country use and claim all of the benefits without any contribution by having all income outside the country, this is not unique to Canada.
As said can’t advise on tax but general practice would be as I understand it that an individual only pays tax in the country they are tax resident in on WW income not both or many countries, assuming Canada has a tax treaty with a country to avoid double taxation. Plus there are special rules for newcomers as below link.
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html
As said can’t advise on tax but general practice would be as I understand it that an individual only pays tax in the country they are tax resident in on WW income not both or many countries, assuming Canada has a tax treaty with a country to avoid double taxation. Plus there are special rules for newcomers as below link.
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/newcomers-canada-immigrants.html
Last edited:
You are not forced to hire lawyers or accountants, and most people can easily prepare and file their taxes without assistance. If you require assistance, then you may need to hire a professional. That's your call and not the government's.
If you have assets worth over $100k outside of Canada, you have to declare them on your tax return. You will have to pay tax on the income earned from these assets, if any. the rationale is that you are living in Canada and availing social services here, and therefore must contribute to the economy as well. Otherwise, we would have a lot of people who are earning income abroad, living in Canada and not paying a cent into the system. Doesn't seem very fair, does it?
Tokibaee, are you sure you researched and planned your migration to Canada? You started so many threads here.
If your property do not generate income - no taxes, but you have to read the link above for newcomers about "a deemed disposition." and to keep the record of a fair market value (FMV). No taxes now, but the FMV will be your cost when you calculate your gain or loss from disposing the property in the future.
The easiest way would probably be to avoid calling it a shop. a shop that isn't open is simply a building.
Are you sure tax money contribute to the economy both at provincial and federal level? I doubt BC sues Alberta over the pipelines contributes to the economy, while federal government's money buy up the pipeline contributes to the economy.
The Federal government's decision to purchase the pipeline was definitely an anomaly, as the benefits are clearly favoring certain provinces over others. Regardless, yes, taxes do help on both the Federal and Provincial levels because both the federal and provincial governments levy them.