Will be working overseas / to be a non tax resident

[NewAdventure]

Hi everyone,

I am a Canadian Permanent Resident. I will be working overseas in Singapore (Canada has a tax treaty) in November 2014 for a few years.

Here are my circumstances:
a) I do not own any home in Canada
b) My car will be sold before I leave
c) I will terminate my provincial health insurance card
d) Will close my bank accounts
e) I have no dependants or relatives in Canada
f) single

I may keep my Canadian driver's license.

1) With the above in mind, will I be a non tax resident in Canada when I work overseas from November 2014?

2) Since Singapore has a tax treaty with Canada, do I pay the higher of the two countries' tax rates or just pay taxes in Singapore only?

3) Before I leave, besides calling CRA to let them know that I will be going overseas to work, is there anything else I need to attend to with regard to tax matters with CRA and Quebec Tax Revenue Agency? Any forms to fill out ? (I live in Quebec.)

Please advise. Many thanks.

 

[mrbeachman]

You basically need to get rid of that drivers license and declare your self a on resident on final income tax return.

Do not open a po box, storage or a safety deposit box. Don't forget to cancel credit cards, although I think you are allowed to keep one.

 

[steaky]

Do not open a po box, storage or a safety deposit box. Don't forget to cancel credit cards, although I think you are allowed to keep one.

No, safety deposit box is fine.

 

[mrbeachman]

No, safety deposit box is fine.

No it is not. It shows your intention you will be coming back. Then surprise.... Canada nails you for taxes owing.

 

[steaky]

No it is not. It shows your intention you will be coming back. Then surprise.... Canada nails you for taxes owing.

No, it is not. I had a safety deposit box in Toronto, but still managed to be a non resident for tax purposes.

 

[mrbeachman]

No, it is not. I had a safety deposit box in Toronto, but still managed to be a non resident for tax purposes.

Just because you got lucky does not mean the next person will be. And I would not have put that fact on a public forum if you know what I mean, so please keep quiet about your "mistakes"

Other residential ties

1.15 Other residential ties that the Courts have considered in determining the residence status of an individual while outside Canada, and which may be taken into account by the CRA, include the retention of a Canadian mailing address, post office box, or safety deposit box, personal stationery (including business cards) showing a Canadian address, telephone listings in Canada, and local (Canadian) newspaper and magazine subscriptions. These residential ties are generally of limited importance except when taken together with other residential ties, or with other factors such as those described in ¶1.16.

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html

 

[steaky]

I know this is a public forum. Those are not mistake.

The ties you mention is just some of the less significant residential ties and are generally of limited importance except when taken together with other residential ties. Therefore, merely holding a safety deposit box would not make you a resident of Canada for tax purposes.

 

[NewAdventure]

Thanks for the responses.

What about the tax treaty if I work overseas for a few years. Since Singapore has a tax treaty with Canada, do I pay the higher of the two countries' tax rates or just pay taxes in Singapore only?

 

[mrbeachman]

Why this question if declaring yourself a non resident.

 

[scylla]

1.15 Other residential ties that the Courts have considered in determining the residence status of an individual while outside Canada, and which may be taken into account by the CRA, include the retention of a Canadian mailing address, post office box, or safety deposit box, personal stationery (including business cards) showing a Canadian address, telephone listings in Canada, and local (Canadian) newspaper and magazine subscriptions. These residential ties are generally of limited importance except when taken together with other residential ties, or with other factors such as those described in ¶1.16.

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html

Steaky is correct. I have tons of expat (non-resident friends) and can confirm a safety deposit box is no problem. In fact the quote you provided directly supports this. See the part I've bolded.

 

[steaky]

What about the tax treaty if I work overseas for a few years. Since Singapore has a tax treaty with Canada, do I pay the higher of the two countries' tax rates or just pay taxes in Singapore only?

Being a non-resident for tax purposes, you only pay taxes to Singapore. No need to worry about the tax treaty unless you are resident.

 

[NewAdventure]

Thanks Steaky,

That is what I want to find out. If I want to go by the tax treaty route, and maintain current ties with Canada by being a Canadian resident while I am working in Singapore, will I be treated as a deemed non-resident for tax purposes (paying on Singapore taxes)?

Or do I pay taxes for both Singapore and Canada ?

I am not sure how the tax treaty works.

 

[steaky]

If you are resident of Canada for tax purposes, you pay income taxes on your worldwide income (i.e. Canada and Singapore).

 

[kiwi1959]

Hi

One more thing, RRSP (Retirement) as well as Medical insurance card like OHIP ...