Working remotely with incorporated small business in ontario.

[palaman4]

Hello All,

Please advise I will thank with an upvote!

I have an incorporated software consultant business. I worked as an contractor (software developer) for a Ontario based company. I worked remotely while living in India for about 5 months. I take monthly salary from my corporation and do remittances on my corporation payroll account. Please note, I do not own or rent any property in Canada or any other country while I am away but my car is left at a rented parking space in Ontario (marital status single).

Questions:

I am wondering if I should move back to Canada for a few days to complete 180 as a Canadian permanent resident?
How does it impact my personal taxes and tfsa limit if I stay less than 180 days in Canada?
Also can someone please explain tax deduction for dividends paid to self. For example what % of the dividend amount do I pay as tax if I give myself a dividend of around $80-150k while annual salary taken is $50k.

Thank you for helping!

 

[YVR123]

Hello All,

Please advise I will thank with an upvote!

I have an incorporated software consultant business. I worked as an contractor (software developer) for a Ontario based company. I worked remotely while living in India for about 5 months. I take monthly salary from my corporation and do remittances on my corporation payroll account. Please note, I do not own or rent any property in Canada or any other country while I am away but my car is left at a rented parking space in Ontario (marital status single).

Questions:

I am wondering if I should move back to Canada for a few days to complete 180 as a Canadian permanent resident?
How does it impact my personal taxes and tfsa limit if I stay less than 180 days in Canada?
Also can someone please explain tax deduction for dividends paid to self. For example what % of the dividend amount do I pay as tax if I give myself a dividend of around $80-150k while annual salary taken is $50k.

Thank you for helping!

To meet RO

Pursuant to subsection A28(2), a permanent resident complies with the residency obligation provisions with respect to a 5-year period if, for at least 730 days in that 5-year period, the permanent resident is

The 180 days is not relevant for meeting RO.

So it's up to you to feel how important to maintain your RO and not risking your PR status.

Not going to answer exactly the "tax" portion. It's likely better for an accountant to answer it.

 

[canuck78]

Hello All,

Please advise I will thank with an upvote!

I have an incorporated software consultant business. I worked as an contractor (software developer) for a Ontario based company. I worked remotely while living in India for about 5 months. I take monthly salary from my corporation and do remittances on my corporation payroll account. Please note, I do not own or rent any property in Canada or any other country while I am away but my car is left at a rented parking space in Ontario (marital status single).

Questions:

I am wondering if I should move back to Canada for a few days to complete 180 as a Canadian permanent resident?
How does it impact my personal taxes and tfsa limit if I stay less than 180 days in Canada?
Also can someone please explain tax deduction for dividends paid to self. For example what % of the dividend amount do I pay as tax if I give myself a dividend of around $80-150k while annual salary taken is $50k.

Thank you for helping!

You also need to get CRA to determine your tax residency status if you have left Canada. It is not solely based on time spent in Canada and property ownership/rental. Assume you have withdrawn your PGP application if you are no longer living in Canada.

 

[palaman4]

You also need to get CRA to determine your tax residency status if you have left Canada. It is not solely based on time spent in Canada and property ownership/rental. Assume you have withdrawn your PGP application if you are no longer living in Canada.

Thank you for your response but there has to be some criteria to determine my cra resident status, what is considered as leaving Canada, in my understanding I never left Canada I was still working for ontario firm while I was just traveling for few months.

 

[canuck78]

Thank you for your response but there has to be some criteria to determine my cra resident status, what is considered as leaving Canada, in my understanding I never left Canada I was still working for ontario firm while I was just traveling for few months.

Based on your posts you seem to be getting close to 6 months abroad with no home in Canada. People traveling for a few months have a home still in Canada. This is even more complex as it appears that you are working for your own company.

There is some basic criteria for tax residency status but CRA can’t list every scenario in their documentation.

 

[YVR123]

Thank you for your response but there has to be some criteria to determine my cra resident status, what is considered as leaving Canada, in my understanding I never left Canada I was still working for ontario firm while I was just traveling for few months.

You physically left Canada.
And it's on your own term since you could have been living inside Canada to work for the Canadian client (as you said your company is providing service to).

Being tax resident for CRA won't suddenly make you "living inside Canada" if that's what you want to be able to sponsor your parents. You don't have a resident address in Canada.
Also have you finally got your citizenship? You were outside so much that you missed your oath ceremony and needed to redo finger prints last year.

 

[Copingwithlife]

In a nutshell what are you ACTUALLY trying to achieve ?