Special projects, work, a new style of life generated by a semi or full retirement bring you plan to stay outside Canada more or less prolonged? Or semi-permanent? Whatever the reasons and motivations of this change, you then ask what is meant by "break the bonds of residence."
Your residency status in Canada could be affected, among other things, that: you sold, abandoned or sold a home in Canada, you had a permanent residence in another country, the people who are directly related to you (spouse and dependent children) have also left the country you liquidated all your personal property, you have not canceled or renewed your Canadian driver's license, you close your bank accounts and canceled most of your credit cards; you have returned your insurance card to the Quebec RAMQ (or that of your provincial plan, if you live in Canada, but outside of Quebec).
Each situation is different, an assessment of yours by a tax or other competent professional in the field, or check with governmental authorities in tax matters is essential.
That said, if you find yourself in a situation by ensuring that you have lost your Canadian resident, you can keep your investment plans, but can not continue to contribute to your Registered Retirement Savings Plan (RRSP) , unless you have income earned in Canada and possess unused contribution room.
Why give so much importance to this change in status from resident to non-resident of Canada? For several reasons, including some very pertinent to consider:
After your departure from Canada, you will still pay taxes (in Canada) on your Canadian-source income. However, if you become non-resident, you will benefit from the tax treaty between Canada and over 68 countries. For example, when withdrawn from your RRSP, you will be subject to withholding tax fixed about 25% percentage current in most governmental agreements of that tax treaty.
However, if you want to keep your status as a Canadian resident, you must comply with the tax rules of the 183 days, that is to say, to reside in Canada for at least 183 days in a year, if your residency status will be affected and your eligibility for various government programs, such as the Régie de l'assurance maladie du Québec (RAMQ) will be suspended. Note that even when you have the opportunity to apply for a derogation from this rule with the RAMQ to maintain your status and rights in some cases extended trip. However, such a request must be approved by Medicare before leaving Canada.
A proper assessment of your overall situation is more than necessary to get the best "solution" tax and give you peace of mind.
You can find the complete rules and details related to the items listed in this article directly on the website of the Canada Revenue Agency www.cra-arc.gc.ca. You will also find additional information about the status of residence, the provision of goods and your tax obligations in general.
Your residency status in Canada could be affected, among other things, that: you sold, abandoned or sold a home in Canada, you had a permanent residence in another country, the people who are directly related to you (spouse and dependent children) have also left the country you liquidated all your personal property, you have not canceled or renewed your Canadian driver's license, you close your bank accounts and canceled most of your credit cards; you have returned your insurance card to the Quebec RAMQ (or that of your provincial plan, if you live in Canada, but outside of Quebec).
Each situation is different, an assessment of yours by a tax or other competent professional in the field, or check with governmental authorities in tax matters is essential.
That said, if you find yourself in a situation by ensuring that you have lost your Canadian resident, you can keep your investment plans, but can not continue to contribute to your Registered Retirement Savings Plan (RRSP) , unless you have income earned in Canada and possess unused contribution room.
Why give so much importance to this change in status from resident to non-resident of Canada? For several reasons, including some very pertinent to consider:
After your departure from Canada, you will still pay taxes (in Canada) on your Canadian-source income. However, if you become non-resident, you will benefit from the tax treaty between Canada and over 68 countries. For example, when withdrawn from your RRSP, you will be subject to withholding tax fixed about 25% percentage current in most governmental agreements of that tax treaty.
However, if you want to keep your status as a Canadian resident, you must comply with the tax rules of the 183 days, that is to say, to reside in Canada for at least 183 days in a year, if your residency status will be affected and your eligibility for various government programs, such as the Régie de l'assurance maladie du Québec (RAMQ) will be suspended. Note that even when you have the opportunity to apply for a derogation from this rule with the RAMQ to maintain your status and rights in some cases extended trip. However, such a request must be approved by Medicare before leaving Canada.
A proper assessment of your overall situation is more than necessary to get the best "solution" tax and give you peace of mind.
You can find the complete rules and details related to the items listed in this article directly on the website of the Canada Revenue Agency www.cra-arc.gc.ca. You will also find additional information about the status of residence, the provision of goods and your tax obligations in general.