Your Canadian Residency Status Affects Your Tax Liability

Your tax liability is based on your status as a resident or non-resident of Canada based on Canada’s tax system.  Residency must first be established before your liability for income tax is determined.

Determining your residency status can only be made after all factors have been reviewed.  The entirety of your circumstances must be evaluated in order to accurately establish your residency status in Canada.

The major factor in establishing your residency status in Canada depends on your residential ties.  Residential ties can include:

  • A home in Canada

  • A spouse or common-law partner or dependents in Canada

  • Personal property in Canada such as a car or furniture

  • Economic ties in Canada


Other ties may include:

  • A Canadian driver’s license

  • Canadian bank accounts or credit cards

  • Health Insurance with a Canadian province or territory


Residential ties that you may have in another country may also be relevant in determining your residency status.

Special rules may apply in the following circumstances:

  • If you established residential ties and became a resident of Canada

  • If you severed residential ties and ceased to be a resident of Canada

  • If you do not have residential ties in Canada, you may be a deemed resident if you stayed in Canada for 183 days or more.

  • If you are a government employee outside Canada, or you are a member of the Canadian Forces serving outside Canada.

  • If you are a resident of another country and do not have residential ties in Canada.


The CRA can provide you with an opinion on your residency status related to your tax liability and filing obligations.  To request for their assistance, complete Form NR74, Determination of Residency Status (Entering Canada) or Form NR73, Determination of Residency Status (Leaving Canada). Send your completed form to the International Tax Services Office.

Reference:
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Tax Obligations of a Newcomer
Why Do You Have to File Your Tax Return on Time?

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