If you live outside of Canada or spend most of the year traveling internationally, your tax obligations vary based on how much time you spend in Canada, your ties to Canada, and the type of income that you collect. In some cases, you do not need to file at all; in other cases, filing a return is essential.
If you normally live in another country, you are automatically considered a non-resident of Canada.
If you live partly in Canada and partly in another country, you are considered a non-resident as long as you live in Canada for less than 183 days of the year and have no significant residential ties to the area.
- If you spend 182 days in Canada and have few ties to the area, you will likely be considered a non-resident.
- In contrast, if you spend 182 days in Canada but have a spouse, a home, and a car in the country, you may be considered a resident.
It is always a good idea to contact CRA prior to filing your return to ensure you are declaring the proper status.
If you own a business in Canada or if you earn money from a job in Canada, your income is subjected to the part I tax.
Part XIII tax applies to dividends, rental payments, old-age pensions, retirement income payments, and annuity payments as well as other types of investment income.
If you are a non-resident and receive OAS, you must file an Old Age Security Return of Income.
Filing Non-Resident Tax Returns
If you are a non-resident, you need to file a special tax return – Form 5013-R T1 (Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada).
For more information please check TurboTax: Taxation for Non-Residents
Tax Obligations for Non-Residents
If you are classified as a non-resident of Canada, you are only obligated to pay tax on income you receive from sources in Canada. Generally, this includes Part XIII tax or Part I tax.
For more information please check:
If you need any further clarifications, we would be glad to assist you by having you contact us by phone or via Facebook or Twitter.
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