You’ve been offered that great opportunity overseas, and not sure how that will affect you in Canada. Is this a permanent departure or temporary? Do you still have to file an income tax return in Canada? What do I have to divest myself of to not have to file a tax return in Canada? There are many things to think about when leaving Canada for work or otherwise.
Under Canada’s tax system, your income tax obligations to Canada are based on your residency status, not citizenship. You need to know your residency status before you can know what your tax responsibilities and filing requirements to Canada are. An individual’s residency status is determined on a case-by-case basis and the individual’s whole situation and all the relevant facts must be considered. The relevant facts in determining your residency status include: the residential ties you have in Canada, the purpose and permanence of your stays abroad, and your ties abroad.
The first thing you need to determine is do you have residential ties to Canada. Significant residential ties include: a home in Canada, a spouse or common-law partner in Canada, and dependents in Canada.
Other ties that may be relevant include:
The residential ties you establish or maintain in other countries may also be relevant.
Your residency status if you left Canada
Your residency status if you entered Canada
Your residency status if you normally, customarily, or routinely live in another country
If you want Canada Revenue Agency’s opinion on your residency status, complete either Form NR74, Determination of Residency Status (Entering Canada) or Form NR73, Determination of Residency Status (Leaving Canada), whichever applies, and send it to the International and Ottawa Tax Services Office. You must give CRA as many details as possible on your form so that they can give you our most accurate opinion.
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