do i have to pay tax for 2020 after soft landing?

[fn_hkwae]

Hi

I want to have some guidance on below.

Feb2020, I soft landed in canada, (being in canada for 1 day), got the SIN number, bank account.
Sep2020, I will officially fly to canada.

how does it work for the tax?
1. interests earned in bank account
2. returned on stock before sep and after sep?

In the tax year 2020, I stayed outside canada for more than 183 days, so i would be a non-resident.
But does non-resident get taxed on US stock return for whatever time they moved to canada, namely after sep?

Many thanks.

Steve

 

[MidoRafa]

Hi

I want to have some guidance on below.

Feb2020, I soft landed in canada, (being in canada for 1 day), got the SIN number, bank account.
Sep2020, I will officially fly to canada.

how does it work for the tax?
1. interests earned in bank account
2. returned on stock before sep and after sep?

In the tax year 2020, I stayed outside canada for more than 183 days, so i would be a non-resident.
But does non-resident get taxed on US stock return for whatever time they moved to canada, namely after sep?

Many thanks.

Steve

You get taxed from the day you become a "tax resident", which usually happens the day you establish "significant ties' like a place of residence (rented or owned), or have a spouse/dependents residing in Canada. Merely landing and opening a bank account in themselves are not considered significant ties. Check out CRA's "Newcomers to Canada" section and the corresponding guide "Pamphlet T4055" for the official information.

So from your description, you will probably become a tax-resident when you actually move this month. All income/dividends/capital gains earned from non-Canadian sources until that day are not taxed in Canada. Once you become a tax resident, all income earned anywhere in the world would be taxed (with possible relief from double taxation through tax treaties).

There's an interesting twist for stocks (and assets in general), whereby if you had bought them before moving to Canada, you will have to calculate their value on the day you become a tax resident, and that will be your new "cost basis" for these assets for when you decide to sell them. This is also covered in the literature I pointed to earlier.