Bank account in different county?
- Thread starter noobmoon
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Hi
You can have bank accounts in as many countries as you wish, Canada only cares if permanent residents/citizens don't report revenue from those accounts. Residents have to report on their income taxes any amounts outside Canada valued over 100K.noobmoon said:
NetMecca
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Hi
Canada has no foreign exchange controls, so I agree you can have bank accounts anywhere (except in countries with sanction related restrictions) which I do not anticipate will prove an issue.
The rules of taxations are driven by several factors, including tax treaties between countries, as well as where you are living, temporary or permanent.
You need not worry about banking in other countries at all. As mentioned earlier, if you have income in any foreign country however, you may have to declare it (and pay tax) on that income, here in Canada. (so if you earned interest on the money in the foreign bank account you may have to declare that interest as income and pay taxes here)
I would suggest that after you arrive, and when you submit your first tax return, you discuss the foreign income point with a licensed accountant.
Good luck!..
Canada has no foreign exchange controls, so I agree you can have bank accounts anywhere (except in countries with sanction related restrictions) which I do not anticipate will prove an issue.
The rules of taxations are driven by several factors, including tax treaties between countries, as well as where you are living, temporary or permanent.
You need not worry about banking in other countries at all. As mentioned earlier, if you have income in any foreign country however, you may have to declare it (and pay tax) on that income, here in Canada. (so if you earned interest on the money in the foreign bank account you may have to declare that interest as income and pay taxes here)
I would suggest that after you arrive, and when you submit your first tax return, you discuss the foreign income point with a licensed accountant.
Good luck!..
NetMecca
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You only have to pay taxes on money that you earned in a particular tax year. So if you have earned money during 2014 (even outside of Canada) you will be required to pay taxes on what you have earned.
Eg. Say you earned $10000 (after tax) in 2012, you paid taxes on it in your home country, and then decide to invest it in an interest bearing bank account for 2013.
You move to Canada in 2013 and work and earn money in Canada. In 2013 you also earn $200 on your investment. For your 2013 tax return then (due in 2014) you only have to declare the $200 interest as foreign income.
If at any point you decide you want to rbing the original $10000 to Canada, since this was earned and taxed before you came to Canada, you will not be obligated to pay taxes on that amount in Canada again.
I brought some money as well, did not have to pay on what I brought (previously earned and taxed in my home country)
Good luck!...
Eg. Say you earned $10000 (after tax) in 2012, you paid taxes on it in your home country, and then decide to invest it in an interest bearing bank account for 2013.
You move to Canada in 2013 and work and earn money in Canada. In 2013 you also earn $200 on your investment. For your 2013 tax return then (due in 2014) you only have to declare the $200 interest as foreign income.
If at any point you decide you want to rbing the original $10000 to Canada, since this was earned and taxed before you came to Canada, you will not be obligated to pay taxes on that amount in Canada again.
I brought some money as well, did not have to pay on what I brought (previously earned and taxed in my home country)
Good luck!...
How do you proof that the money was earned before you enter Canada?
Also, if you have some earnings like renting and bank interest in your home country even after you enter Canada, how can they know about it, if you keep it in bank account in a local bank?
Also, if you have some earnings like renting and bank interest in your home country even after you enter Canada, how can they know about it, if you keep it in bank account in a local bank?
NetMecca
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Some old bank statements (or tax returns) would do the trick. I would not be too concerned about old money, provided you have an answer should this ever be questioned.
You are correct though. The Canada Revenue Service will not know about it, unless you declare it. Though dishonesty will likely catch up to you at some point in the future. And this could cause tax penalties, interest on unpaid taxes & penalties, as well as potential charges for tax evasion, which could severely affect your ability to immigrate to Canada.
I would recommend that you keep your new Canadian Life as clean as possible, especially if you intend to make a life for yourself in Canada.
I have to wonder though about the motives of leaving money in your home country. We have a saying where I am from " Far from your belongings, close to your losses" (loose translation)
Bring it over here. Eliminates the risk of too many tax questions, especially if it is in cash.
Good luck
You are correct though. The Canada Revenue Service will not know about it, unless you declare it. Though dishonesty will likely catch up to you at some point in the future. And this could cause tax penalties, interest on unpaid taxes & penalties, as well as potential charges for tax evasion, which could severely affect your ability to immigrate to Canada.
I would recommend that you keep your new Canadian Life as clean as possible, especially if you intend to make a life for yourself in Canada.
I have to wonder though about the motives of leaving money in your home country. We have a saying where I am from " Far from your belongings, close to your losses" (loose translation)
Bring it over here. Eliminates the risk of too many tax questions, especially if it is in cash.
Good luck
The point in leaving the money in my home bank account is that I am coming in Canada as a temp worker, plus I have 3 months probation period... and because I want to be super safe I first want to make sure I can succeed in Canada, that I can plan my life there, at a later stage, probably after I apply for permanent visa I will bring everything here.
I know this might sound a bit pessimistic, but I want to be realistic and I don't want to make dreams, or expect some Hollywood movie to happen in Canada and to get disappointed later. My motto is, hope for the bast but prepare for the worst
I first want to make sure I can succeed in Canada, that I can plan my life there, at a later stage, probably after I apply for permanent visa I will bring everything here.I know this might sound a bit pessimistic, but I want to be realistic and I don't want to make dreams, or expect some Hollywood movie to happen in Canada and to get disappointed later. My motto is, hope for the bast but prepare for the worst