How do taxes work for Dual Citizens (British and Canadian)?

[fitter_happier]

Hey,

I am Scottish born and bred so I have a British passport. Next month I should be flying back for the Citizenship ceremony but I've been residing in Scotland for the last couple of years and will be residing in Scotland for the foreseeable future due to current circumstances.

My question is this.

When I become a Dual citizen soon and hold both a British passport, and a Canadian one, will I be expected to pay any Canadian taxes if I am residing in the UK and working for a British employer?

I am not too sure how it works exactly. Surely I wouldn't pay any Canadian taxes unless I actually worked and lived in Canada again after becoming a dual citizen?

 

[scylla]

Hey,

I am Scottish born and bred so I have a British passport. Next month I should be flying back for the Citizenship ceremony but I've been residing in Scotland for the last couple of years and will be residing in Scotland for the foreseeable future due to current circumstances.

My question is this.

When I become a Dual citizen soon and hold both a British passport, and a Canadian one, will I be expected to pay any Canadian taxes if I am residing in the UK and working for a British employer?

I am not too sure how it works exactly. Surely I wouldn't pay any Canadian taxes unless I actually worked and lived in Canada again after becoming a dual citizen?

No, you won't. If you are classified as a non-resident, then you don't need to file taxes.

 

[fitter_happier]

Thanks very much

 

[Dreamlad]

Hey,

I am Scottish born and bred so I have a British passport. Next month I should be flying back for the Citizenship ceremony but I've been residing in Scotland for the last couple of years and will be residing in Scotland for the foreseeable future due to current circumstances.

My question is this.

When I become a Dual citizen soon and hold both a British passport, and a Canadian one, will I be expected to pay any Canadian taxes if I am residing in the UK and working for a British employer?

I am not too sure how it works exactly. Surely I wouldn't pay any Canadian taxes unless I actually worked and lived in Canada again after becoming a dual citizen?

You file taxes wherever you live for more than 6 months.

 

[Grassquit]

I would recommend talking to a tax accountant - you can likely find someone who will do a free consultation. Canada does have a more US-like system of taxing overseas income than the UK system, but there are tax treaties to prevent (mitigate at least) dual taxation. I'm expecting to work overseas in the next few years and my understanding is that I'll be liable for (some) Canadian tax even if my income is paid overseas. Chances are good that you won't have the ties to Canada that might designate you resident (property, family, bank accounts, drivers licence) but you will be a citizen so you'll want to be sure that you're not considered resident by virtue of that alone.

This is also a general note to all that tax residency questions can be a bit more complicated than where you live or where you're paid. Sometimes it's that simple but best not to assume.

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents-tax.html