How to determine your residency status for income tax purposes?

According to Canada’s tax system, your income tax obligations are based on your residency status. It is essential to determine your residential status and its tax implications before paying your income tax. According to CRA:

  • If you are working temporarily outside Canada, vacationing outside Canada, or attending school in another country, you may be considered a factual resident of Canada.
  • If you have left Canada and settled in another country, you may be considered an immigrant.
  • If you established ties in a country that Canada has a tax treaty with and you are considered a resident of that country, but you are otherwise a factual resident of Canada, you may be considered a deemed non-resident of Canada.
  • If you have left Canada to work as a government employee abroad, you are usually considered a factual resident or a deemed resident of Canada. This includes members of the Canadian Forces posted abroad.

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Pay Less Tax

A great small business tax accountant does more than just measure value, they create it. At CPA4IT our goal is to save you substantially more than it costs you for our services. Over the last 30 years we have developed tax strategies designed to help you keep more of your hard earned money. If you would like to learn how we can help you pay less tax, simply download our FREE Guide to Pay Less Tax.