moving

Hye,

If one is earning 54,000 CAD per year while being outside Canada, how much taxes does one pay? If there is no direct answer can anybody direct me to a site where I could get this information.


Thanks in advance

Bryan Kellar

Welllllllllllllll...........
This depends on a few things.

If you are outside the country AND considered to be a non-resident AND the source of the income is not Canadian, then you don't owe anything.

If any of the above are true, then the federal tax rate is 16% on the first $35,000 of taxable income and 22% on the next $35,000 of taxable income. Of course, taxable income depends on a lot of personal things.

In addition, there will be a graduated provincial income tax ranging from 4% to 15%, depending upon which province is home. For more details on that, try the link here: http://www.cra-arc.gc.ca/tax/individ...axrates-e.html .

With more specific information, I could elaborate.

Bryan

moving

Hye Bryan,

Thanks for the reply. My situation is as follows:

Landed on 1st August, 2004 and my wife has picked up a job where she will be earning about 8500CAD a year. I hope to get a job from 1st October with an American University and the job is in the West Indies where I wil be earning about 55,000 CAD a year. We are resident in Ontario (Toronto). In such a situation what taxes would we have to pay? Also, how would that affect our Child Benefits. We have a 5 year old son.

Looking forward to your reply.

****************

Velouria

Ernst & Young have a tax calculator which will calculate your combined federal and provincial tax, and your after tax income, for each province and territory:

http://www.ey.com/global/content.nsf...ors_-_Overview

iaink

Unfortunately IIRC it doesnt take into account personal circumstances, and I dont know that it takes into account CPP and EI contributions, so may not give an accurate prediction of your real financial position . Its usefull for comparing provinces though.

Bryan Kellar

Last question first: There is a good child benefits calculator at http://www.cra-arc.gc.ca/benefits/ca...or/menu-e.html . You appear to come out about $73.00 per month. However, keep in mind, the benefits will be based upon last year's income. So you should try for yourself on the CRA link.

Your wife's tax return will show a small amount of tax.

You are likely going to be considered a resident for tax purposes, if you have a home in Canada with a wife and child there. (This answer could be different if you have no belongings there and set up a different and seperate household from the rest of your family. But that would be treading awfully close to the line.) For people lurking here, the answer depends on a lot of facts & circumstances that depend on the individual. A person with few ties to Canada, even though they have landed there, could be considered non-resident and not owe any tax to Canada.

Presuming you owe Canadian taxes, on a full year's salary, you would owe about $12,000 to $13,000 in federal & provincial tax, about $3600 in CPP contribution, and some other minor other things. This is certainly an estimate: There are lots of deductions & credits available, and I expect you to start putting money in an RRSP for retirement! That could reduce the tax bill.

That's probably my best guess... but it should give you an idea of what you will have to work with. Since this is a non-Canadian company, you will likely have to make tax payments as you go, since they will not withhold Canadian taxes.

Take care!

Bryan