Higher Tax Rates For Foreign Income?

[StevenSmith3427]

Hi,

I hope everybody is having a great December!

I have a UK business, and earn all my income from my UK business.

I am also a PR of Canada.

Can anyone please shed some light as to how I will be taxed in Canada? I fear I may have to pay an extra/higher tax rates as the income I earn is considered foreign income.

I’m very concerned.

Cheers!

Steve

 

[steaky]

For 2 years, you still haven't figured out?

 

[StevenSmith3427]

Nope, it's complicated. Especially when the Canadian government investigate the tax return. Having revised my tax return, and sent them the 5 documents they want to see - yes, I still have not figured it out.

 

[StevenSmith3427]

Update: I'm confused with the surtax of 48% of federal taxes. Does this mean as a permanent resident of Canada, of whom makes his money in the UK, I pay my Ontario tax, then I pay an additional 48% of my Ontario tax to the Canadian Federal Government?

 

[Bs65]

Maybe a crazy suggestion but possibly time to consult a tax specialist/ accountant for sensible answer versus a public forum.

 

[BC4life]

How is your company set up in the UK? Is it a limited company or a sole propertorship? Do you pay yourself a salary or just dividends? Do you pay your taxes in the UK? If you can provide more details we may be able to help. But obviously the best option would be to speak to an international tax professional

 

[hamgha]

Hi,

I hope everybody is having a great December!

I have a UK business, and earn all my income from my UK business.

I am also a PR of Canada.

Can anyone please shed some light as to how I will be taxed in Canada? I fear I may have to pay an extra/higher tax rates as the income I earn is considered foreign income.

I’m very concerned.

Cheers!

Steve

i am in a similar issue. it depends on the tax treaties. if it's a corporation, you have to make the difference between your own personal income (your salary + dividends) versus the company income. now for me i will be filing for the first year a T2 and let them decide if it's needed or not because at this stage every accountant/lawyer i've talked to gave me a different opinion
i will have a question for you as well though, did you register your uk business in canada somewhere?

 

[steaky]

Good news that you make your home in Ontario. If you own your home and resides in a specific municipality in BC, since you earn all of your income in the UK business, you might need to pay the speculation and vacancy tax.

Now, this is out of your concern!