Taxes - CRA

Hi,

I am a Canadian, working in Mexico City for a Swedish company.

I have a specific question in regards to taxation: What is the exemption for income earned in Mexico?

I know that IRS, considers 87K, earned overseas as 'tax free'. I did my research and called CRA (Canadian Revenue Agency), with no avail. As a note, CRA, customer service reps do not have the info. My opinion, they are a bunch of dorks.

Any information would be appreciated. I can pay with Tim Hortons coffee,

Lucian

CRA does not have any "exemption" for foreign earned income. Instead, you have the ability to break Cdn residential ties and not pay Cdn tax at all on foreign income.

The reason IRS has such an exemption is becuase US citizensa are required to report income to IRS regardless of where they live -- Cdns do not have such a requirement.

If you do not break ties, the only relief you have is to get credit for the Mex tax you pay on your Cdn tax return.

if you worked for a Cdn employer, there is an overseas tax employment tax credit, but, this dies not apply to you.

So, your best bet is to sufficiently break Cdn residential ties (no house, no spouse in canada should be enough), and file a departure return.

Nelson,

To your knowledge, Canada (CRA), does not have any exceptions for Canadian citizens working abroad, as IRS?

As an info, I purchased a property in Canada (Ontario). The market there is too good to be missed.

L

To your knowledge, Canada (CRA), does not have any exceptions for Canadian citizens working abroad, as IRS?

Isn't that what I just said?

Cdns do not need such an exception, since they can break taxation to canad by leaving canada. US citizens cannot do this, thus the exemption.

You need to review your ties to canada. As I said, a spouse and a house are typical strong ties. merely having property is not. if you are living and working abroad in a country that has a tax treaty with canada (like mexico) unless you are living in a hotel, it is quite likely that you are a tax resident of that country and not Canada. that would remove taxation of your non-Cdn income.

Only Cdn residents working abroad temporarily for a Cdn company get a tax break.