Permanent residence - taxation of non resident - working abroad

[bogotabob]

Hello,

I'm in a complicated situation and need help.

I'm a Canadian citizen. I've sponsored my wife (a Colombian citizen) and she is now a Canadian Permanent Resident (it has been about 1 year that she's been here in Canada now).

I've recently been offered a job in Dubai and would like to accept the offer and move to Dubai with my wife.

Dubai is tax-free so my income will earned in Dubai will not be taxed by the Dubai government. Further, to avoid Canadian taxation, I would like to become a non-resident for the duration of my stay in Dubai (3-5) years to avoid being taxed on income earned while in Dubai.

Now that you have context, here are my questions:

1) Will my wife lose her Permanent resident status if we move to Dubai for 3-5 years?
2) Considering Dubai issue her a work permit, as a Canadian PR, would Canada raise any issues if she were to find a job and also work in Dubai?
2) If she does find a job in Dubai, will she be required to declare tax as Canadian Permanent resident or is there a way for here to declare "non resident" status to avoid taxes (similar to what i plan do to).

Thank you,
Kevin

 

[Rob_TO]

Your wife can keep her PR status forever since she would be living with her Canadian citizen spouse.

She can of course work there as well, the only issue for you and her is tax residency to Canada.

Read this for more info: https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.html
You need to terminate lots/most of your ties to Canada (financial accounts, credit cards, registered investments, memberships, property/car ownership, etc etc). Also the fact you fully intend to return in the future shows you are not planning to permanently sever ties, which is another complication.

Ultimately it's up to CRA if they allow you and your wife to claim non-residency and avoid paying Canadian taxes. Simply being physically outside Canada is sometimes not enough.

 

[bogotabob]

Thanks Rob! I appreciate your response.

 

[bogotabob]

3-5 years in Dubai...after we hope to work / travel to different countries. We won't return to Canada, so cutting ties should be fine! hope so.

Bob

 

[boldmove2018]

Your wife can keep her PR status forever since she would be living with her Canadian citizen spouse.

She can of course work there as well, the only issue for you and her is tax residency to Canada.

Read this for more info: https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-5-international-residency/folio-1-residency/income-tax-folio-s5-f1-c1-determining-individual-s-residence-status.html
You need to terminate lots/most of your ties to Canada (financial accounts, credit cards, registered investments, memberships, property/car ownership, etc etc). Also the fact you fully intend to return in the future shows you are not planning to permanently sever ties, which is another complication.

Ultimately it's up to CRA if they allow you and your wife to claim non-residency and avoid paying Canadian taxes. Simply being physically outside Canada is sometimes not enough.

Rob, I'll soon become Canadian PR. I currently work in the US and am not planning to move to Canada till I find a job that suites me. It will probably take a few months to a year. Before I move to Canada for good, am I considered non-resident for tax purpose? Since I will not likely have income from Canada, does it mean that I don't have to worry about filing tax return in Canada?

I'm considering getting my SIN and opening a credit card account there. Does it change anything?

 

[ankith27]

Hello all.

My questions pertains to the same topic.

I recently received my PR card however, I am currently living in US under H1B Visa. My family and I plan to stay in the USA for sometime before moving.

While we are in the US, are we required to pay income tax from the day we received PR status?

Thank you in advance.

 

[saurabh2004]

I am planning to move to Canada as PR holder.

As an NRI, the interest on my NRE FDRs is tax-free in India.

So as a Canadian PR, do I need to pay tax on my NRE FDRs Interest as well.

kindly advise...

 

[Mughal007]

Hello,

I'm in a complicated situation and need help.

I'm a Canadian citizen. I've sponsored my wife (a Colombian citizen) and she is now a Canadian Permanent Resident (it has been about 1 year that she's been here in Canada now).

I've recently been offered a job in Dubai and would like to accept the offer and move to Dubai with my wife.

Dubai is tax-free so my income will earned in Dubai will not be taxed by the Dubai government. Further, to avoid Canadian taxation, I would like to become a non-resident for the duration of my stay in Dubai (3-5) years to avoid being taxed on income earned while in Dubai.

Now that you have context, here are my questions:

1) Will my wife lose her Permanent resident status if we move to Dubai for 3-5 years?
2) Considering Dubai issue her a work permit, as a Canadian PR, would Canada raise any issues if she were to find a job and also work in Dubai?
2) If she does find a job in Dubai, will she be required to declare tax as Canadian Permanent resident or is there a way for here to declare "non resident" status to avoid taxes (similar to what i plan do to).

Thank you,
Kevin

Hey Kevin,
Have you moved and settled in Dubai? Can you Share your experience regarding Canadian Tax? I am also planning to move to Dubai. Appreciate your support.