When you are living and working in a country of whom you are not a legal resident of, then you are deemed as a non-resident of that state or country. In such cases non-resident taxation rules will apply for one. When one lives and works in Canada but is not a resident of Canada, they need to be aware of the Canadian non-resident taxation rules. There are nowadays informative articles that can be found online which talk about such matters. One can even seek the assistance of tax lawyers online who can help one to compute their necessary tax figures in case of a non-resident.

Legal Definition of A Non Resident

While in layman’s terms it is easy to state who is a non-resident and who is not, one needs to understand the legal definition as well as per the Canadian law.

• One is deemed a non resident when you customarily or routinely live in another country and thus do not reside in Canada

• When you do not have residential ties with anyone in Canada and have stayed for less than 183 days in a tax year or lived outside the country for the major part of a tax year.

In such cases one usually becomes liable to pay non-resident taxes. It is important to find out all you can about the Canadian non-resident taxation laws.

Different Rules for Different Kinds of Employments

When you live outside the country during a tax year and are a government employee, part of the Canadian Forces or staff of an overseas school chain, you need to check on the rules that apply for one. The rules are usually from other family members and dependent children as well. Such rules make it easy for people working in such institutions.

Clarity On Certain Terms

Often there is confusion as to whether one would be deemed resident or non resident of Canada for legal and tax purposes. One is deemed a non resident of the country and a resident of another country with whom Canada has a tax treaty. In such cases, for taxation purposes, one is deemed a non resident of Canada. Again, the definition of residential ties is important to understand for such purposes. If one has a home in Canada or a spouse or dependent who stays in Canada and if you own personal property in Canada such as a car or furniture and have social ties in Canada, you become liable for non-resident taxation. The tax obligations in such matters are as per the income that one generates from different sources in Canada. The type of tax one needs to pay and the income tax return needed to be filed is dependent on the kind of income that one receives. The sections Part XIII and Part I tax policies apply in such cases. These sections can be easily referred to online and one can understand their tax obligations and even file their returns online to save on consultancy fees and time.

Who Are Considered As Non-Residents In Canada?

The term non-resident has a different context to it when it comes to the laws of taxation. Canadian taxation of non-residents is applicable only if you are classified as a non-resident for tax purpose. Generally, you are considered as a non-resident in Canada if

• You do not have a significant amount of residential ties in Canada and you are someone who is living outside Canada throughout the tax year,

• You do not stay for more than 183 days in a year in Canada and also do not have residential ties of importance in Canada

• You are a tax resident of another country that has a tax treaty with Canada, and the terms of that treaty deem you to be a non-resident.

Only if you fall under one of the categories that have been stated above, you will be able to use the Canadian non-resident taxation option.

How to Get to Know More about Canadian Non-Resident Taxation

If you want to know more about Canadian taxation of non-residents, you can have a look at the official website of the Canadian Revenue Agency or search online for an explanation that may be easier to understand for you. It is however a better option if you could talk to a consultant who specializes in Canadian non-resident taxation as the consultant will have a lot of expertise and experience in the tax laws that will be present. As consultants who specialize in non resident taxation, they will have valuable information on the recent laws and the laws that are expected to come in the following years. It is always better to plan for the future as you would not want to end up in trouble after a few years. In addition, you should never rely on advice provided by the CRA without obtaining independent advice as well.

Should I Hire a Tax Expert to Help Me with Canadian Non-Resident Taxation Related Issues?

If you are facing any problems with the Canadian taxation of non-residents, then it is a good option to seek the services of a tax expert who has specialized in dealing with non-resident taxation issues. Such tax experts will have very good knowledge of the various problems that arise due to Canadian non-resident taxation and also the options available to you to get over the issue you are facing currently. But it is very important to select a tax expert who has the expertise and also the experience in handling such issues as problems related to non residents can get ugly if not properly handled.