There are many tax implications to be considered for those who earned income in Canada and who may call another country home.
At first, it's important to determine your residency status for tax purposes.
A person is considered a non-resident of Canada (for Canadian income tax purposes) if they:
- Had no residential ties to Canada and lived outside Canada all year, and was not a deemed resident.
- Had no residential ties to Canada and they stayed in Canada for less than 183 days.
- Were deemed not to be resident in Canada under the Income Tax Act because of the provisions of a tax treaty Canada has with another country.
A person is classified as a deemed resident of Canada (for Canadian income tax purposes), if they :
- Did not have significant residential ties in Canada
- Stayed in Canada for 183 days or more, AND
- Were not considered a deemed non-resident of another country under a tax treaty, OR
- Lived outside Canada during 2019.
Significant residential ties almost always include a home in Canada, and a spouse or common-law partner and/or dependants who stayed in the country while the subject was living abroad. Other relevant residential ties may include:
- a Canadian driver's license
- Canadian bank accounts or credit cards
- health insurance with a Canadian province or territory
- personal property, and social ties within Canada.
For further information on non-resident tax obligations please click Canadian tax obligations and entitlements for non-residents.
For further information on how to file your tax return to Revenu Québec using NetFile Québec please click: How to file your return using NetFile Québec and how to review the status of Revenu Québec
thank you for your reply. I entered Canada in June 28th, 2019 with a working holiday visa and lived/worked in Montreal for same employer until June 26th,2020. I extended my stay in Montreal with a tourist visa until July 31st, 2020. I still have my Canadian bank account. Does it mean that I do have residential ties to Canada and therefore a deemed resident?
As per Deemed resident criteria you have been residing in Canada for more than 183 days and also holding a Canadian bank account so you will be considered deemed resident of Canada for the tax year.
As per CRA :
If you are a deemed resident of Canada for the tax year, you:
- must report world income (income from all sources, both inside and outside Canada) for the entire tax year
- can claim all deductions and non-refundable tax credits that apply to you
- are subject to federal tax and instead of paying provincial or territorial tax, you'll pay a federal surtax
- can claim all federal tax credits, but you cannot claim provincial or territorial tax credits
- are eligible to apply for the goods and services tax/harmonized sales tax (GST/HST) credit
If you have any further clarifications, we would be glad to guide you through.