Self Employed in UK, Canadian Permanent Resident as of Dec 21' - Do I need to file my foreign income?

[Magitch]

I have been in Canada as a tourist since Sept 2019, I now have permanent residency here as of December 2021, all of my work is carried out in the UK and I pay UK taxes. I need to know if I will owe/file any taxes in Canada? 

I have yet to register for a SIN number and not sure if this is something I need to do? I am here with my common law spouse. 

Thanks in advance! 🙂

[Tom_Cheng]

Congrats to be a permanent resident in Canada!

If you’re a resident in Canada, you must declare any income earned outside of Canada on your Canadian tax return. But you'll only be taxed on your foreign income you earned after you became a resident. Anything earned up to that point should be declared too, but you won't be taxed on it.

If you receive income from UK, some of that income may be exempt from taxes due to a tax treaty between Canada and UK.

To file a Canadian tax return as a resident, you should apply your SIN number first from below:

Canada Revenue Agency(CRA)Social Insurance Number

For more information, please click:

TurboTax What Is Exempt Foreign Income?

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[Magitch]

Hi Tom, many thanks for your prompt response, you have helped me get a better understanding of where I'm at. 

What do I do about income I earned abroad in 2020 & 2019, does this need to be reported even though I was a tourist? Will I receive a penalty for filing late?  

I understand I can also file without a SIN number and the first time I file it has to be sent via post, can you confirm?

Thanks in advance.

[Magitch]

Hi Tom, I also had another quick question, I will need to report my foreign earnings but the tax year in the UK runs from April to March so how will this work? I haven't even finalised how much tax I will be paying in the UK yet as it doesn't have to be completed until January 2022, I only have estimated figures.

Thanks in advance.  

[Tom_Cheng]

If you are not sure whether to file a tax return, I suggest you contact the Canada Revenue Agency(CRA) to check with them. They can also help you with information about the tax treaty.

For more information, please click:

TurboTax Foreign Income and Tax Treaties

Canada Revenue Agency(CRA)  Convention Between the Government of Canada and the Government of the United Kingdom of Great Britai...

Thank you for choosing TurboTax.