NRI deposits in India and canadian tax

[steaky]

I have landed in Canada and started my job for three weeks. I am not sure what do you mean by not resident
The thing is If I bring that money for example 2 years later, how do I bring ang do I need to pay tax? Else is there any way that I can register that property or something.
Kindly advice

As such you are a tax resident, every year, you would need to declare your overseas holdings in the Canadian tax return. If you sold your property, you would need to report your that when you file your annual tax return and pay the tax owing. Like I said, you can wire the money to your bank account in Canada or keep the money in your Singaporean bank account as long as you wish. For details about the tax system, you can read the Canada Revenue Agency website.

 

[seton]

1. How Can I transfer money (without tax) from Singapore after selling my prperty there? I haven't sold it yet and planning to keep it for few years.
For that case when I will sell will need to give tax for that? Can I declare my flat in Singapore now so that I don't need to give any tax when I will sell it.

There will be a taxable capital gain from the value of the property when you became a Canadian resident.

For example, you bought the property for $100,000. When you became a Canadian resident, the property was worth $200,000. You sold the property today for $250,000.

You will be subject to a capital gain of $50,000 ($250,000 - $200,000) based on the value when you become a Canadian resident, and the disposition of the asset. The appreciation from when you first bought the asset to when you became a Canadian resident is not taxable in Canada. Note that when you become a resident of Canada, in some countries (depending on tax laws and treaties) there might be a deemed disposition whereby you would pay tax on any appreciation of the assets as if you sold it.

 

[swapno]

Thanks Steaky & Seton for valuable insight. How do they assess how much is gain on the property after landed?
Another point is that when do I need to do all those staffs? Is it next year when I will file my tax? Any idea, kindly shed some light.

Swapno

There will be a taxable capital gain from the value of the property when you became a Canadian resident.

For example, you bought the property for $100,000. When you became a Canadian resident, the property was worth $200,000. You sold the property today for $250,000.

You will be subject to a capital gain of $50,000 ($250,000 - $200,000) based on the value when you become a Canadian resident, and the disposition of the asset. The appreciation from when you first bought the asset to when you became a Canadian resident is not taxable in Canada. Note that when you become a resident of Canada, in some countries (depending on tax laws and treaties) there might be a deemed disposition whereby you would pay tax on any appreciation of the assets as if you sold it.

 

[Gary Goldshmidt]

I would be careful when advising taxation of real estate, there may be tax in the country of origin in this case India and Canadian Tax if someone is a permanent resident. Plus there are a host of other issues that need to be addressed even if there was a capital gain for Canadian tax purposes, such as currency fluctuation gains and losses etc... This is where you need a good accountant and if the amount is large a tax lawyer. As an financial adviser I ask as a generalist in these areas, sometimes it does pay to get professional advise, it is cheaper in the long run.

As far as bringing money to Canada it is never a problem anyone can bring as much as they want. Will it be subject to Canadian Tax in most cases yes and so it should if you live in Canada and benefit from out services you should be paying tax. I always tell my clients the biggest concern is if there is no tax to be paid it means the person had no income, if one has to pay tax this is a good thing because they made money.

 

[Aquib]

True - it could also go the other way. The Canadian dollar could take a dip as well (5 years ago it used to be 80 cents to a US Dollar) - who knows.

See this world is round. Its again 80 cents now.

 

[Ramasingapore]

Dear Subject matter Experts,
I am an Indian national working in singapore for past 15 years as Permanent resident. Recently got Canadian Pr.
I have a huge amount of S$ in my Singapore CPF account and as Fixed deposits in India in NRE(Tax free) account..I will be landing in canada by early next year.
Since I intend to retain my Singapore PR till its expiry 2025 or till i get Canadian Citizenship whichever earlier. I have a few questions to clarify:
1. Is it advisable to transfer all my SGD to India and kept in NRE(tax free account) when surrendering my singapore PR in 2025?
2.Since all these earnings are before i get canadian PR can i choose not to show when i file for Canadian Tax?

Please Opine..Thanks

 

[prash42]

Dear Subject matter Experts,
I am an Indian national working in singapore for past 15 years as Permanent resident. Recently got Canadian Pr.
I have a huge amount of S$ in my Singapore CPF account and as Fixed deposits in India in NRE(Tax free) account..I will be landing in canada by early next year.
Since I intend to retain my Singapore PR till its expiry 2025 or till i get Canadian Citizenship whichever earlier. I have a few questions to clarify:
1. Is it advisable to transfer all my SGD to India and kept in NRE(tax free account) when surrendering my singapore PR in 2025?
2.Since all these earnings are before i get canadian PR can i choose not to show when i file for Canadian Tax?

Please Opine..Thanks

You will be considered a tax resident of Canada only when you physically move to Canada. Once you become a tax resident of Canada, you are taxed on global income, including on investments sitting in Singapore and India. This includes NRE interest, which is tax-free in India, but taxable in Canada. It is possible that Singapore CPF gets special treatment, similar to US IRA account, but that's something you should seek professional tax advice.

Once you become a tax resident of Canada, you will have two annual filings (1) income tax return, like everybody else, (2) T1135 showing foreign assets (if they exceed C$100,000 in total). Sometimes new immigrants ignore / don't know about the T1135, without realizing it's a serious offence to skip this filing. https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1135.html

If you have significant savings, getting professional tax advice BEFORE you move to Canada is a good idea.

DISCLAIMER: I am not a tax advisor / lawyer. Only sharing my understanding.

 

[Indiapnp]

Friends,
I am trying to understand all and parts of the topics discussed in this thread.

Did anyone use an professionals to seek advise on - money conversions and other questions - to identify best means of transferring funds etc..? Any recommendations would be appreciated.

Thanks
Indiapnp

 

[Canadianimmi]

Hola,
A related question - If I am a PR holder living in canada permanently and my NRE accounts in INDIA generate 10,00,000 Indian Rs yearly as interest that I want to bring to canada. At what rate will it be taxed? is it flat 15%?

thanks,

 

[mad_hatter]

Hola,
A related question - If I am a PR holder living in canada permanently and my NRE accounts in INDIA generate 10,00,000 Indian Rs yearly as interest that I want to bring to canada. At what rate will it be taxed? is it flat 15%?

thanks,

The tax rate will depend on your taxable income. The higher is your income, the higher is the tax rate.

 

[Canadianimmi]

The tax rate will depend on your taxable income. The higher is your income, the higher is the tax rate.

Thanks for the reply, I am a bit confused though. My employment salary will be tax deducted at source. So when I file my taxes at the end of the year and I declare say approx 23000 CAD as foreign income (which is interest earned in India repatriated to Canada), what tax rate would apply on that. Would that tax on foreign income also contribute towards Employment insurance and pension plans or would it be flat 15% based on tax slab to be paid as tax on the 23K CAD when filing returns?
tnx

 

[canuck_in_uk]

Thanks for the reply, I am a bit confused though. My employment salary will be tax deducted at source. So when I file my taxes at the end of the year and I declare say approx 23000 CAD as foreign income (which is interest earned in India repatriated to Canada), what tax rate would apply on that. Would that tax on foreign income also contribute towards Employment insurance and pension plans or would it be flat 15% based on tax slab to be paid as tax on the 23K CAD when filing returns?
tnx

There is no flat rate. As said above, the tax rate depends on your overall taxable income, which includes your employment income. The $23k would be added to your other taxable income and you would be taxed according to the bracket that the income falls in.

 

[mad_hatter]

Thanks for the reply, I am a bit confused though. My employment salary will be tax deducted at source. So when I file my taxes at the end of the year and I declare say approx 23000 CAD as foreign income (which is interest earned in India repatriated to Canada), what tax rate would apply on that. Would that tax on foreign income also contribute towards Employment insurance and pension plans or would it be flat 15% based on tax slab to be paid as tax on the 23K CAD when filing returns?
tnx

Unemployment insurance and Canadian Pension Plan contributions are based on employment earning only, you do not have to make additional contributions because of your interest income. On the flip side, interest income is also not consider as earned income, it cannot increase your RRSP contribution room.

 

[Canadianimmi]

If I am an NRI in Dubai holding funds in NRE account in Indian bank (taxfree interest in india). And I move to canada next month.
a) When I live and work in canada as PR - NRE account status would stay as is - correct? meaning I am still non-resident of India except I live in canada instead of UAE?
b) My NRE account interest, when credited to NRE account, will not be tax deducted at source in India because basically NRE account interests are tax-free - correct?
c) When I file returns in canada, I have to declare foreign income earned in NRE accounts (even though they are tax free in India) but they are taxed in canada - correct?

I ask this because there is tax treaty between india and canada and not sure how this impacts my NRE account when I move from Dubai to canada.

Thanks in advance.

 

[DEEPCUR]

If I am an NRI in Dubai holding funds in NRE account in Indian bank (taxfree interest in india). And I move to canada next month.
a) When I live and work in canada as PR - NRE account status would stay as is - correct? meaning I am still non-resident of India except I live in canada instead of UAE?
b) My NRE account interest, when credited to NRE account, will not be tax deducted at source in India because basically NRE account interests are tax-free - correct?
c) When I file returns in canada, I have to declare foreign income earned in NRE accounts (even though they are tax free in India) but they are taxed in canada - correct?

I ask this because there is tax treaty between india and canada and not sure how this impacts my NRE account when I move from Dubai to canada.

Thanks in advance.

you just declare the interest gained as income and pay taxes just for that, and not for the principal amount itself. you already paid the the taxes for the principal amount when you earned it, no matter where it is.