Do Canadians pay taxes on money made overseas?

Expats and travellers in the mid east, connect here.
cmcostelJunior Member
Topic author
Posts: 12
Joined: 27 Oct 2007
Location: Toronto

Do Canadians pay taxes on money made overseas?

Post Sat Oct 27, 2007 12:54 pm

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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BermudaBumModerator
Posts: 88
Joined: 22 Apr 2006
Location: London

Post Sat Oct 27, 2007 2:45 pm

I believe the CDN gov't can nab you if you're away <2 years, after that you're clear.
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cmcostelJunior Member
Topic author
Posts: 12
Joined: 27 Oct 2007
Location: Toronto

Post Sat Oct 27, 2007 3:07 pm

thanks for your help!
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BermudaBumModerator
Posts: 88
Joined: 22 Apr 2006
Location: London

Post Sat Oct 27, 2007 5:48 pm

No worries.
To be safe poke around the CDN gov't website to re-confirm.
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BethersNew MemberUser avatar
Posts: 7
Joined: 12 Sep 2007
Location: Strathroy, Canada (FOR NOW...)

Post Sun Oct 28, 2007 6:42 pm

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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BermudaBumModerator
Posts: 88
Joined: 22 Apr 2006
Location: London

Post Mon Oct 29, 2007 3:18 am

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

Also, look at this gov't "Income Tax Act" document: http://www.cra-arc.gc.ca/E/pub/tp/it221 ... olid-e.pdf

They may clear up some issues you have.

Cheers.
W.
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nanah2000New Member
Posts: 3
Joined: 16 Apr 2008
Location: Montreal

Post Wed Apr 16, 2008 1:52 am

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_doNew Member
Posts: 1
Joined: 7 May 2008

Post Wed May 07, 2008 6:56 am

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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MartNew Member
Posts: 2
Joined: 23 May 2008

Post Fri May 23, 2008 1:07 am

Hi,
did you get any information about having to pay taxes on money earned in Dubai?
I am in the same situation and do not know what to do.
Regards,
Mart
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MartNew Member
Posts: 2
Joined: 23 May 2008

Post Fri May 23, 2008 1:19 am

Hi all,
I need some advice. two month ago sent the non-residency form (since I left Canada, have no canadian ties, and moved to Dubai) and yestarday got an answer. They told me that every canadian expatriate leaving in UAE must pay taxes since we are considered as "factual canadian residents" according to the treaty between Canada and UAE (paragraph 4, point 1.B). It's that true?!
Please provide same input and accurate info!
Thank you,
Martin
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