Tax issues

[KDSH]

Hi,

I moved to Canada in middle of July 2022 as a PR.
I work for a small employer as a remote employee.
By mid-December I am moving to India where I am planning to be for 1-2 years and still continuing to work remotely on Canadian Payroll.

For 2022, I have less than 180 days in Canada and no other significant ties in Canada (except bank account and drivers license), so I think I will file Non-resident return this year.
For next year I will become tax resident in India so will pay estimated tax and year end tax and then file return in Canada to get credit for the payroll deducted taxes.

I will seek advice from some tax experts but also wanted to check if someone lese in this situation and what did they do.

Thansk!

 

[canuck78]

Hi,

I moved to Canada in middle of July 2022 as a PR.
I work for a small employer as a remote employee.
By mid-December I am moving to India where I am planning to be for 1-2 years and still continuing to work remotely on Canadian Payroll.

For 2022, I have less than 180 days in Canada and no other significant ties in Canada (except bank account and drivers license), so I think I will file Non-resident return this year.
For next year I will become tax resident in India so will pay estimated tax and year end tax and then file return in Canada to get credit for the payroll deducted taxes.

I will seek advice from some tax experts but also wanted to check if someone lese in this situation and what did they do.

Thansk!

Your employer will need to pay you as a remote worker living in India so there will be no deductions off your payroll for things like CPP, etc. if you are determined not to be a tax resident of Canada. Make sure your employer is ok with you moving abroad since they will have to change their payroll. You will have to notify CRA that you are leaving Canada so will be a non-resident and CRA can determine also help you determine whether you are a Canadian tax resident or not. You also have to notify your provincial health authority that you are leaving Canada if you got a healthcard. If you have not spent 180 days in the province you never met residency requirements to qualify for healthcare. If you got a health card you will need to reapply for healthcard when you return to Canada and plan on meeting the residency requirements to qualify. Your work while living in India will count as foreign work.