If an american citizen who returned from abroad to the u.s. and not only declared a lot of money but paid taxes on it to the american government, would they have to pay taxes to the canadian government if they married a canadian citizen and moved to canada ultimately? Would the canada revenue agency tax them even though they had already been taxed in the u.s. for the money brought from abroad? What if they renounced their citizenship in canada?
Marriage and taxes?
- Thread starter osmaryhernandez
- Start date
Simple starting answer: Canada (for the most part) only taxes income, not 'money you have.' Of course, if you have significant income from savings, investments, and property on an ongoing basis (incl capital gains and the like), you will pay taxes on those. Generally speaking, taxes paid in other countries are credited in Canada - but since tax rates (and basis for defining income) can be different, as are other deductions, you may or may not end up owing some to one country or the other.
When you begin to pay taxes on income on a move to Canada, timing may make a difference how much you pay.
If one has 'a lot of money', then it would be stupid not to use some of it to consult a professional.
And no - renouncing Canadian citizenship will usually not affect how much taxes payable in Canada - Canadians (incl PRs) pay taxes based (mostly) on residency. The reverse is not true for US citizens.
But if an american already has paid like 500 million usd in taxes while in the u.s., would they have to pay more taxes in canada for this money or not? Im confused here...? The american irs already got what they wanted but would the cra want a piece of the pie too?
I repeat: if this is just money sitting in the bank when the person arrives in Canada, they should not end up paying taxes on that.
But income received on those investments/savings afterwards would be taxable in Canada as worldwide income, just like other Canadians. If taxes on those investments are paid in the USA, those USA taxes would be deducted (basically).
Someone with $500 million though should not be going to advice boards from internet strangers who could be, in reality, Irish wolfhounds (however precocious compared to other wolfhounds).
If it's income for the current tax year, then yes, you would include this income when you file your taxes in Canada. You will get credit for whatever taxes you already paid in the US however it's quite possible you may still owe taxes to Canada. If you are living in Canada then you have to file taxes on your worldwide income. Yes, the IRS and CRS both want a piece of the pie. Note that if you are American, you must file taxes matter where you are living.
If the US citizen is NOT a CDN resident for tax purposes and subsequently moves to Canada they will not owe CRA anything on earnings before moving to Canada. As mentioned it is only if you are a CDN resident then you would have to pay, possibly, in both the US and CDA. Lots of countries have tax treaties where if the tax is paid in one it might not have to be paid in the other.
If you are not considered a CDN resident for tax purposes you will not have to pay CDN taxes. You can read about it here:
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
If they are still a US citizen they are still going to pay US taxes. If you have 500 million you have an accountant that is making your tax rate pretty minimal whether in Canada, US or Vietnam.If you have 500 million dollars taxes paid or you have that much of savings, you dont want to live in Canada
Go to Vietnam or something and live like a king!