Do Canadians pay taxes on money made overseas?

cmcostel
Junior Member



Joined: 27 Oct 2007
Posts: 12
Location: Toronto

Posted: Sat Oct 27, 2007 11:54 am

 

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We are moving to Dubai which is a tax free country. If we return to Canada after a few years, will we have to pay taxes on money earned in Dubai? How does this work?

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BermudaBum
Moderator


Beachin' in Bermuda

Joined: 22 Apr 2006
Posts: 75
Location: Bermuda

Posted: Sat Oct 27, 2007 1:45 pm

 

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I believe the CDN gov't can nab you if you're away <2 years, after that you're clear.

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cmcostel
Junior Member



Joined: 27 Oct 2007
Posts: 12
Location: Toronto

Posted: Sat Oct 27, 2007 2:07 pm

 

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thanks for your help!

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BermudaBum
Moderator


Beachin' in Bermuda

Joined: 22 Apr 2006
Posts: 75
Location: Bermuda

Posted: Sat Oct 27, 2007 4:48 pm

 

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No worries.
To be safe poke around the CDN gov't website to re-confirm.

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Bethers
New Member



Joined: 12 Sep 2007
Posts: 7
Location: Strathroy, Canada (FOR NOW...)

Posted: Sun Oct 28, 2007 5:42 pm

 

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Hiya,

I'm jumping in here.I spent some time on the gov websites and it just about killed me! There is so much info and one page contracts the other.

There was something about becoming a "non-resident" of Canada when you become a 'resident' of another country.also apparently Canada has an agreement with a lot of countries where you can pay tax in the country you're going to instead of at home, to avoid being taxed both places (of course no tax in UAE but that is one of the countries on the agreement.)

Can anyone else shed some light? We are going to keep our home here.will that make a difference? I know we will have to pay the prop. taxes but other than that?

Thanks! Hope someone can help!

Beth

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BermudaBum
Moderator


Beachin' in Bermuda

Joined: 22 Apr 2006
Posts: 75
Location: Bermuda

Posted: Mon Oct 29, 2007 2:18 am

 

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Check out this article: http://www.escapeartist.com/efam/65/Living_In_Bermuda.html

Also, look at this gov't "Income Tax Act" document: http://www.cra-arc.gc.ca/E/pub/tp/it221r3-conso...r3-consolid-e.pdf

They may clear up some issues you have.

Cheers.
W.

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nanah2000
New Member



Joined: 16 Apr 2008
Posts: 3
Location: Montreal

Posted: Wed Apr 16, 2008 12:52 am

 

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I think you do actually have to pay taxes unless you declare yourself a non-resident; you're better off speaking with a tax lawyer before moving here.

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col_do
New Member



Joined: 07 May 2008
Posts: 1

Posted: Wed May 07, 2008 5:56 am

 

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I consulted a tax attorney here in my home town and this is the advice I was given:

1. Renounce your health care
2. You cannot, CANNOT have any property in your name or you will pay taxes upon your return.
3. Do not fill out the form declaring yourself a non-resident.
4. Give up all Canadian investments
5. Renounce your drivers' license.
6. Your contract should not have a definite start and end date. Try to leave it open, or at least give yourself the option to renew.

The key thing, he told me, is the notion of intent. You have to prove that you do not INTEND to move back to Canada. If you can do that then you're home free.

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