• Home
  • Services
  • Tax Publications
  • Career Training
  • Seminars
  • About
  • Contact

Diana Mau CPA, CA

Chartered Professional Accountant, Richmond, BC

  • Email
  • RSS
  • English
  • 中文 (香港)
  • Home
  • Services
  • Tax Publications
    • Comparison of Federal Budget on Corporate Tax Rates
    • Tax Updates 2008
    • Tax Preparation for Non-Residents
  • Career Training
  • Seminars
  • About
  • Contact
Home / Tax Publications / Tax Preparation for Non-Residents

Tax Preparation for Non-Residents

  • Residents vs non-residents
  • Residents taxed on world’s income
  • Non-residents taxed on Canadian sourced income, such as employment income from Canada, business income from Canada and taxable capital gain from taxable Canadian property etc.

Residency

  • Question of facts
  • No family ties in Canada
  • No residence where you and your family can readily reside
  • No Vehicle in Canada
  • No Canadian credit card
  • Cancel resident bank account
  • No telephone, cable and post office mailing address
  • Termination of medi-care
  • Informing of your change of address to outside of Canada to all sources
  • Not to renew driver’s licence
  • Investment/bank account – close or change to non-resident account
  • Filing of form NR 73

Tax Implications on Becoming a Non-Resident

  • Deemed disposition of Canadian property

Exceptions to Deemed Dispositions

  • Real property situated in Canada
  • Capital property or inventory used in carrying on a business in Canada
  • Excluded property such as RRSP, RESP etc.
  • You have not been resident in Canada for more than 60 months, property you owned before you became a resident of Canada or inherited while resident

RRSP

  • You may collapse an RRSP in the year of departure and pay tax on you marginal rate
  • You may collapse an RRSP while being a non-resident, subject to a 25% non-resident withholding tax

Interest Income

  • Canadian interest income/dividend income subject to a 25% withholding (treaty country may reduce to 15%)
  • Interest on Canadian government bonds or treasury not subject to withholding tax
  • Interest on currency other than Canadian currency not subject to withholding tax

Principal Residence

  • Sale of principal residence
  • Exemption on sale of principal residence
  • Renting our of principal residence

Renting Out

  • NR6
  • NR4
  • Filing of income tax return

Selling or Taxable Canadian Property While a Non-Resident

  • File a form T2062 to get a Clearance Certificate
  • Otherwise taxed on 33 1/3% of the gross proceed, example :-
    Sale of a property for a sale price of $400,000.00, cost of property $500,000.00, if no Clearance Certificate, tax of 33 1/3% on $400,000.00

Diana Mau

At Diana Mau's office, we are committed to provide the most valuable & quality services on a timely basis.

Find out how we can help your business succeed.

Contact Us

About Diana Mau

Diana Mau graduated from Simon Fraser University in 1975 and obtained her Chartered Accountant designation in 1978.

She previously practised with Ernst & Whinney, specializing in the area of Canadian taxation for over ten years. She started her own accounting practice in November 1991.

Read More…

Contact Us

Location

Diana Mau
205-8833 Odlin Crescent
Richmond V6X 3Z7

Tel: (604) 279-9270
Fax: (604) 279-8769

Email:

© 2019 Diana Mau · Privacy Policy · Web Design by TM