TaxTips.ca
Canadian Tax and
Financial Information
Leaving Canada

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!      Internet Explorer - Use compatibility view for calculators to work properly!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources


Personal Income Tax -> Leaving Canada

Leaving Canada

If a resident of Canada moves to another country, and severs residential ties with Canada, he/she is deemed to be an emigrant of Canada for tax purposes.  When this happens, the person is deemed to have disposed of almost all their property and re-acquired it at fair market value.  Tax will be payable on any capital gains arising from the deemed dispositions.

Emigrants are not eligible for:

bullet Canada Child Tax Benefit (CCTB)
bullet Child Disability Benefit (CDB)
bullet Universal Child Care Benefit (UCCB)
bullet GST/HST credit

It is important that you report your date of emigration to Canada Revenue Agency (CRA) as soon as possible.

If you are participating in the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP), you have to pay the balance of the funds you withdrew by whichever date is earlier:

bullet 60 days after you become a non-resident; or
bullet the date you file your tax return for the year.

If you continue to receive Canadian-source income after you emigrate, Part XIII tax of 25% will be withheld from certain types of income.  The most common types of income subject to withholding tax are:

bullet non-arm's length interest
bullet dividends
bullet rental payments
bullet pension payments
bullet Old Age Security (OAS) pension
bullet Canada Pension Plan (CPP) or Québec Pension Plan (QPP) benefits
bullet retiring allowances
bullet registered retirement savings plan (RRSP) payments
bullet registered retirement income fund (RRIF) payments
bullet annuity payments

The tax treaty between Canada and your new country of residence may reduce the rate of non-resident withholding tax on some types of income.

For more detailed information, see the following information on the CRA web site:

bullet Leaving Canada (emigrants)
bulletFolio S5-F1-C1 Determining an Individual's Residence Status
bulletNon-Resident Tax Calculator - calculates the Part XIII tax on payments to non-residents of Canada, depending on the country of residence of the payee.

Tax Tip:  Get professional tax advice before emigrating from Canada.

 

Revised: January 07, 2015

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.