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-   -   Residency Status for Tax Purposes on Working Holiday Visa (https://britishexpats.com/forum/canada-56/residency-status-tax-purposes-working-holiday-visa-933785/)

PottsyJ Jul 15th 2020 1:27 am

Residency Status for Tax Purposes on Working Holiday Visa
 
Hi all,

I was wondering if someone could provide advice on a matter for residency status for tax purposes. I read the residency requirements on CRA's website but was wondering if, during a working holiday visa if more than 183 days of the year was spent outside of Canada while on the working holiday visa regardless of whether an apartment is rented in Canada would I be deemed as non-resident? I traveled frequently back and forth to Canada but spent more than half the year outside of the country.

Any help on this would be much appreciated. Thanks.

unobscure Jul 16th 2020 4:42 am

Re: Residency Status for Tax Purposes on Working Holiday Visa
 
Disclaimer - I just arrived and no nothing. I will take a guess just so I can see if I am right when someone knowledgable answers.

Guess: If you are on a holiday or tourist visa (working holiday or otherwise) you are not a resident for tax purposes. Apartment, hotel, cave, mansion... makes no difference. In Hong Kong it was certainly the case that a visitor wasn't a resident (for tax purposes). I spent several years there as a visitor.

Siouxie Jul 16th 2020 6:12 am

Re: Residency Status for Tax Purposes on Working Holiday Visa
 

Originally Posted by unobscure (Post 12882423)
Disclaimer - I just arrived and no nothing. I will take a guess just so I can see if I am right when someone knowledgable answers.

Guess: If you are on a holiday or tourist visa (working holiday or otherwise) you are not a resident for tax purposes. Apartment, hotel, cave, mansion... makes no difference. In Hong Kong it was certainly the case that a visitor wasn't a resident (for tax purposes). I spent several years there as a visitor.

The IEC is an open work permit which is what the OP came on, not the same as coming in as a tourist :)

@the OP - I would suggest you ask Canada Revenue for a decision on the question as whether they deem you resident for tax purposes, once you have re-read this: https://www.canada.ca/en/revenue-age...cy-status.html :)


Significant residential ties to Canada include: a home in Canada

Secondary residential ties that may be relevant include:
  • personal property in Canada, such as a car or furniture
  • social ties in Canada, such as memberships in Canadian recreational or religious organizations
  • economic ties in Canada, such as Canadian bank accounts or credit cards
  • a Canadian driver's licence
  • health insurance with a Canadian province or territory

Your residency status if you left Canada

  • If you are working temporarily outside Canada, vacationing outside Canada, commuting (going back and forth daily or weekly) from Canada to your place of work in the United States, or attending school in another country, and you maintain residential ties with Canada, you may be considered a factual resident of Canada

and https://www.canada.ca/en/revenue-age...ce-status.html
and https://www.canada.ca/en/revenue-age...us.html#N107F4
:)

PottsyJ Jul 16th 2020 1:03 pm

Re: Residency Status for Tax Purposes on Working Holiday Visa
 
Thanks for the responses. My situation is very unique in that I initially came to Canada planning on using my working holiday visa to both work and travel in Canada but realized stupidly after I got to Canada that the industry I worked in was really heavily regulated which meant I couldn't work in Canada so I continued to work in the UK for big portions of the year and spent less than half the year in Canada even though I had rented an apartment in Canada.


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