Nonresident tax is levied only on the income that is received from sources in Canada and the worldwide income of the nonresident is not considered for taxation. For most of the nonresidents that income tax is deducted at source from the gross pay when being paid to them by the employer and the tax that is deducted is deposited by the employer to the Canadian Revenue Agency (CRA). You will first have to determine your Canadian residency status with regard to taxation to know if you are liable to pay non-resident tax.

You will require obtaining a few forms like the Canadian T4 form that is supposed to be given to you by the Canadian employer if you have to file nonresident tax. The T4 form will have a summary of all your earnings and deductions that have been made by the employer and are usually mailed to the address that is given by the nonresident to the employer. These forms are important for international tax filing and therefore ensure that the correct address is given to the employer to receive them. Employers will issue the T4 form generally between January and March so that you can file the non-resident tax return by April 30th.

Non-resident corporations who have business interests in Canada and generate revenue from a business that is located in Canada will have to pay corporate tax to the Canadian Government. The clauses that govern the corporate tax in Canada are a bit complicated and the complications will only increase if you are a non-resident. If you are carrying on business in Canada either directly or indirectly then the profit that is earned out of the business will be subject to taxation. Like in income tax, the residency status of the corporation will have to be determined and the corporate tax that is levied will be based on the residency status of the corporation.

The nonresident taxation policy in Canada considered 15% tax deduction at the source to be a rough estimate of the nonresident tax liability of the person. If you are covered by treaty protection or can show that your expenses are bound to be more you can apply for a waiver or tax reduction request to the concerned department. A waiver application will have to be filled and submitted to the tax services office that is responsible for tax related functions in the area that you provide services in.

Many find the process of preparing for, and filing their taxes bothersome, and for these individuals, the best advice one can give would be to seek the advice of a professional, whose job it is to be aware of the latest changes in tax laws. A certified tax accountant is trained to know how to best reduce your tax burden, or increase your refund, all while reducing the stress of tax season.

Those with large estates usually needs to consider estate planning. If you are wondering what such planning usually involves, it usually makes plans as to whom to transfer the estate after one dies. The estate is defined as all the property that one owns. That can include property as well as clothes, cars, houses, land, retirement fund, investments, saving accounts, cash, jewelry and others. There has to be defined goals and objectives for estate planning.

Objectives of Tax Planning

The objectives of estate planning are usually several:

• One needs to ensure that the estate is transferred to the beneficiaries

• Assigning guardians to look after the interests of minor children

• Paying the least amount of taxes for one’s estate

• Tax planning including nonresident taxes and other taxations as may apply

When it comes to estate planning there are certain terms that one needs to consider. The first factor is a well. It is a legal document that needs to lay down the fate of your property and assets after your death. The will has to define who will receive the property and in what proportions. A trust on the other hand is an arrangement that defines where one can entrust their property. Whether one can entrust their property to a person or an organization. A trustee is a person who is entrusted with the task of managing a property on behalf of a beneficiary or many beneficiaries. The other term is power of attorney. That is a legal power given to a person who can then handle one’s affairs in case one is not in a state to handle their own affairs anymore.

Who Should Do It?

It is said that estate planning should be done by a person who can be defined as legally competent. They need to be of sound mind and should be at least eighteen year of age or older. The estate planning should be done by the owner of the estate when he is in good health and free from any kind of emotional stress.

When One Needs to Pay Nonresident Tax

When one stays in a place or a country of which they are not legal residents of, they might be liable to pay nonresident tax. One needs to have worked in another state and make other forms of income from other states when you are required to file in a nonresident tax return. If you are wondering how to get started with your nonresident tax return one needs to figure out the income that he or she makes in the non resident state as compared to the income made in the home state. Nonresident tax returns are usually compiled from federal returns and one needs to ensure that they complete the federal returns at first. In most cases one needs to make the calculations by listing out the total income from federal return in one column and the income as a nonresident in another column. The nonresident tax is calculated as a percentage of the federal tax returns.