Tax on World Income After Short Landing

[lupacexi]

Hi,

I need to know the tax rule for those who do short landing and later return to Canada permanently? Are they supposed to pay taxes on the income they earned in their home country during this time i.e. before they returned to Canada? I read it on one of the forms for Child benefits where they asked for your annual income (including world income) and the taxes you paid. So it made me wonder what is it going to be like? Do we have to declare our world income for the period between short landing and returning back to Canada? If yes, do we have to show our tax certificates etc ?

 

[xMadMaxx]

As far as I know, you need to check your residency status. if you do not want to pay taxes, then you have to declare yourself as non resident in Canada from International Tax Services Office (which will affect your residency obligations if you want to maintain your PR) www.cra.gc.ca

 

[steaky]

As far as I know, you need to check your residency status. if you do not want to pay taxes, then you have to declare yourself as non resident in Canada from International Tax Services Office (which will affect your residency obligations if you want to maintain your PR) www.cra.gc.ca

By declaring oneself non resident in Canada does not necessary affect one's residency obligation. PR who accompanies their Canadian spouse will maintain their residency obligation .

 

[pie_vancouver]

Hi,

I need to know the tax rule for those who do short landing and later return to Canada permanently? Are they supposed to pay taxes on the income they earned in their home country during this time i.e. before they returned to Canada? I read it on one of the forms for Child benefits where they asked for your annual income (including world income) and the taxes you paid. So it made me wonder what is it going to be like? Do we have to declare our world income for the period between short landing and returning back to Canada? If yes, do we have to show our tax certificates etc ?

You don't have to pay taxes on global income because of short landing (you are not settled in Canada yet) when you come back permanently in Canada then that's the start of you becoming a resident for tax purposes. For CCB app, ex. your family returns in 2018, CRA will request via mail for your 2017 global income converted to CAD as basis for calculation. I have not seen this request form. Maybe other people like newcomers have knowledge of this form when they applied for CCB as the basis would be their income from their home country.

 

[Gregor.Samsa]

A short landing is not relevant for Canada taxes purposes.

Basically you have to fill taxes returns when you expend at least 183 days in Canada

Roughly if you're landing:
- January-July 2nd, 2017 you have to fill Canada taxes return for 2017 (on Spring 2018)
- Landing July 3rd-December, 2017 you still to pay taxes in your previous residence for year 2017, for year 2018 you have to pay taxes in Canada

There are some exceptions, see below.

Check the tax regulations of your previous country of residence to avoid issues.

Your residency status if you entered Canada

• If you left another country to settle in Canada and you established significant residential ties with Canada becoming a resident of Canada in the tax year, you may be considered an immigrant.
• If you have ties in a country that Canada has a tax treaty with and you are considered to be a resident of that country, but you are also a factual resident of Canada because you established significant residential ties with Canada, you may be considered a deemed non-resident of Canada. The same rules apply to deemed non-residents as non-residents of Canada.
• If you have not established significant residential ties with Canada to be considered a factual resident, but you stayed in Canada for 183 or more daysin the year, you may be considered a deemed resident of Canada.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

 

[pie_vancouver]

if a person stayed for at least 6 months then that is not short landing, even if he stayed if he had no income he is not required to file.

 

[takhan]

do u guys know what papers I need to submit if I bring more that 10000 CAD?

 

[Gregor.Samsa]

do u guys know what papers I need to submit if I bring more that 10000 CAD?

No one.
Just say Yes to the question about money on the Custom firm received in the plane before landing

 

[Gregor.Samsa]

if a person stayed for at least 6 months then that is not short landing, even if he stayed if he had no income he is not required to file.

If the person stayed more than 183 days and has not incomes still being recommended to fill tax returns:
- The person could have some taxes returns
- Other benefits like Child Benefits are linked to your incomes and tax return
- You can use your tax return as probe of Canadian residence for PR card renewal or Citizenship application

 

[pie_vancouver]

There are people who do not file because they don't want to, they are super rich that they do not need to work to get income or get benefits, I don't want to elaborate this, CRA has requirements if one is required or not required to file. Check their website.
and btw the topic is short landing

 

[lupacexi]

thank

 

[crewbunk]

so do we need to fill any form or tax return (even we do not need to pay tax) if we just did a short landing this year?

 

[spyfy]

so do we need to fill any form or tax return (even we do not need to pay tax) if we just did a short landing this year?

No. This is assumingt that you have no (literally: no) economic ties with Canada at the moment at all. Even just a Savings account with 0.1% annual interest in Canada could change that answer to a yes.