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-   -   Canada Residency Status and the Tax obligations (https://britishexpats.com/forum/canada-56/canada-residency-status-tax-obligations-948002/)

ayhz1974 May 8th 2023 5:53 pm

Canada Residency Status and the Tax obligations
 
Hi All,

I (Canadian citizen) currently work outside Canada and have residency permit in Saudi Arabia. I have been outside Canada for many years and I just visit Canada for one month from time to time (i.e. every two years). My wife (PR) will be going to live in Canada this year. I may relocate to Canada for work within a year or two. During the time I am working overseas and my wife is in Canada, do I have any tax obligations?

According to the CRA, my wife may be considered a significant residential ties in Canada and that I have to apply for income tax, is this correct?

Anybody has a similar situation and can share his experience, working outside Canada and has residential ties with Canada either spouse, dependents, house, …)?
How did you determine your residency status and how do you apply for Canadian taxes, what is the tax bracket?

I can contact the CRA but did like first to get practical answers from people with a similar situation.

Thanks

Hemlock May 9th 2023 3:59 am

Re: Canada Residency Status and the Tax obligations
 

Originally Posted by ayhz1974 (Post 13191437)
Hi All,

I (Canadian citizen) currently work outside Canada and have residency permit in Saudi Arabia. I have been outside Canada for many years and I just visit Canada for one month from time to time (i.e. every two years). My wife (PR) will be going to live in Canada this year. I may relocate to Canada for work within a year or two. During the time I am working overseas and my wife is in Canada, do I have any tax obligations?

According to the CRA, my wife may be considered a significant residential ties in Canada and that I have to apply for income tax, is this correct?

Anybody has a similar situation and can share his experience, working outside Canada and has residential ties with Canada either spouse, dependents, house, …)?
How did you determine your residency status and how do you apply for Canadian taxes, what is the tax bracket?

I can contact the CRA but did like first to get practical answers from people with a similar situation.

Thanks

You will likely be deemed resident for tax purposes. There are a host of thing the can earn one tax residency, a spouse in country is a significant tie. It might be a good idea to get professional advice, write to CRA for a written determination.
You may have already seen this https://www.canada.ca/en/revenue-age...cy-status.html

leepee May 9th 2023 9:30 am

Re: Canada Residency Status and the Tax obligations
 
Can't help with the technicalities, but when we left Canada, we rented out our house. If we hadn't, we were advised it would have been considered a residential tie and we could have been liable for tax. This was some time ago so not entirely sure of the rules today. I would assume having a spouse living in Canada would impact your tax residency. Obviously the CRA are the people who can answer this.


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