Transfer Funds to Canada Before or After Landing?
Hi all, we are landing in Canada in March and was wondering if we are required to transfer our settlement funds over before we move over or can we leave it until after? Which is better? Thanks for any replies in advance :thumbup:
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Re: Transfer Funds to Canada Before or After Landing?
You can do it either way. A simple wire transfer is all that is needed in most cases. Personaly I would do it after landing as then you have been granted PR status and have a bank account set up etc.
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Re: Transfer Funds to Canada Before or After Landing?
If you are moving here (rather than just landing and going back home again for a bit) then there might be tax implications for doing it afterwards. If the exchange rate moves in your favour you will need to pay tax on the gain. Take a note of the exchange rate at close on the day you become resident if this is the case.
(landing/PR does not automatically make you a resident for tax purposes - usually you have to be coming here to live for that) |
Re: Transfer Funds to Canada Before or After Landing?
Ok, thanks guys :thumbup:
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by Alan2005
(Post 9845863)
(landing/PR does not automatically make you a resident for tax purposes - usually you have to be coming here to live for that)
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by YYZlover
(Post 9850335)
What about coming as a student on a 3 year visa?
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by YYZlover
(Post 9850335)
What about coming as a student on a 3 year visa?
We were considered tax residents from when we started working here and earning and paying tax here. |
Re: Transfer Funds to Canada Before or After Landing?
No issues either, bank account set-up before we arrived. I transfer from the UK (Natwest no issues), not heard of tax on money moved to Canada, the forex rate is what it is at the time of transfer. In order to tax you I would expect them to set a benchmark rate, above that your taxed, find that strange. You can be taxed on money being sent back when you leave Canada and back to the UK. There is a system whereby you can make one lump sum transfer to minimise any impact.
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by Former Lancastrian
(Post 9850355)
Is that a question you are asking for yourself or asking the OP?
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by Andy_Zena
(Post 9856733)
No issues either, bank account set-up before we arrived. I transfer from the UK (Natwest no issues), not heard of tax on money moved to Canada, the forex rate is what it is at the time of transfer. In order to tax you I would expect them to set a benchmark rate, above that your taxed, find that strange. You can be taxed on money being sent back when you leave Canada and back to the UK. There is a system whereby you can make one lump sum transfer to minimise any impact.
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by YYZlover
(Post 9856735)
For myself.
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Re: Transfer Funds to Canada Before or After Landing?
Any ideas if this works in reverse as well? For example, if the day you become tax resideent the rate is 1.60 and at some point in the future you transfer money over at 1.58, can you offset the 2 cents difference ("loss") against the "gains" made times you transferred at 1.62?
Also, what about purchases on UK credit cards in Canada, or withdrawals from a UK credit cards from a Cdn bank machine. Are these seen as "currency tranfsers" as well? Thanks
Originally Posted by Aviator
(Post 9856788)
The 'benchmark' as you say is set on the day you become a tax resident of Canada. This is the prevailing Bank of Canada rate for the day, which is available off of the BOC website which is what CRA use as a benchmark. Any gain made in the FX between when you become a tax resident and when you exchange the currency is taxed at your marginal rate as a capital gain (or loss). Same goes for moving funds to the UK if you took up tax residency there. Any currency trading is a taxable gain, whether you do a lot of small ones or one large one. A few small ones for gifted money is not going to get CRA too excited though.
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Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by ralphster
(Post 9860661)
Any ideas if this works in reverse as well? For example, if the day you become tax resideent the rate is 1.60 and at some point in the future you transfer money over at 1.58, can you offset the 2 cents difference ("loss") against the "gains" made times you transferred at 1.62?
Also, what about purchases on UK credit cards in Canada, or withdrawals from a UK credit cards from a Cdn bank machine. Are these seen as "currency tranfsers" as well? Thanks I would think that credit cards don't count as transfers because it's not your money being transferred. You are simply borrowing GBP and paying back GBP. |
Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by Alan2005
(Post 9860684)
If it's a capital loss and you can offset a capital gain against it.
I would think that credit cards don't count as transfers because it's not your money being transferred. You are simply borrowing GBP and paying back GBP. Santander Zero card gives you the exchange rate at the time with no comission and no withdrawal fee. So if you pay the card off the same day you pay nothing to get the money. |
Re: Transfer Funds to Canada Before or After Landing?
Originally Posted by yzf.shaun
(Post 9861921)
So if you pay the card off the same day you pay nothing to get the money.
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