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A Canadian in Taiwan: The Income Tax Issue

 
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misterno



Joined: 09 Feb 2003
Posts: 18

PostPosted: Fri Mar 07, 2003 2:17 am    Post subject: A Canadian in Taiwan: The Income Tax Issue Reply with quote

Hello to Canadians out there, and others.

I will try to be brief. My wife and I will be making the move from Canada to Taiwan in a few months, more precisely and most likely to Tainan.

My question is this, and goes out to all the Canadians in Taiwan: Are you paying income taxes in both countries? The reason I am asking is because a friend of mine, who is a teacher in Mali, thought she would not have to pay Canadian Income Taxes since she wasn't living in Canada anymore. Wrong! After making sure with the government that she would not be paying any taxes on her income earned in Taiwan, they came back on their decision and now she has to contribute moneywise to her native country. The reason: too many "links" still active with Canada. The "links" are: bank account and credit card, passport, driver's license and life insurance. Now she is really p i s s e d o f f because she went to Mali hoping to save up some money, and now part of it will be taken away from her. I am thinking she has to pay her Canadian Income Tax because she is not paying any in Mali either. (She is working in an American International School.)

My worry now is that the same awaits for me when I make the move. Because to be honest, if I have to pay 20% tax off my salary to Taiwan, and another somewhat% to Canada, then I might as well stay here in my own country. I would end up making more that way. One reason (and, obviously, there is more to going to Taiwan than this), is to make enough money to pay off my student loan faster. Anyway...

So I am asking: Are there any Canadians in Taiwan who have suffered this nightmare? I am thinking of keeping the same "links" to my country, i.e. Passport (obviously), Bank Account & Credit Card with Royal Bank, Driver's License and Life Insurance. Isn't that a strict minimum? Hasn't the government gone nuts?

Any info on this would be mucho appreciated.

Gracias.
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Sunpower



Joined: 22 Jan 2003
Posts: 256
Location: Taipei, TAIWAN

PostPosted: Sat Mar 08, 2003 2:29 pm    Post subject: Reply with quote

Passport?

I can't beleive "Passport" was cited as something working against her in this tax problem she has.

I've been out of country for 4 years now.

I don't pay tax in Canada.
I don't file claims.

I understand that you are viewed as a non-resident by rev can.

Hey, before you come to Asia - Phone an accontant.

Talk to an accountant.

Have fun!
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pianoette



Joined: 23 Mar 2003
Posts: 3

PostPosted: Sun Mar 30, 2003 12:43 pm    Post subject: Canadian Tax Reply with quote

As far as I know,if you have officially applied for the Non-resident status, you do not have to pay tax on $$ earned overseas. By that, you have to give in your health card. Bank accounts are only allowed if its for mortgage purposes. Credit card has to be cancelled. There is no official rule on how many years you have to stay outside of Canada before you can return and reclaim residency but the general perception is at least 3 years.

Now the legislation is going to change soon. The govt officials are trying to put forward a "5 year period" for those that are planning to claim non-residency and return. As far as I know, nothing has been approved yet.

Hope this helps. Rolling Eyes
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7969



Joined: 26 Mar 2003
Posts: 5683
Location: South China, by the sea.

PostPosted: Wed Apr 02, 2003 10:27 am    Post subject: go to.... Reply with quote

the canada customs and revenue site and lok at form NR-73. this is the form you need to fill out fo fle for non-residency. this will enalbe you to work abroad and not pay taxes from income earned abroad.

every case is different, so if one person is granted non-residency, it doesn't necessarily that another person in the same circumstances will be granted it as well.
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angelina



Joined: 29 Mar 2003
Posts: 14

PostPosted: Wed Apr 16, 2003 4:54 am    Post subject: Reply with quote

Is it "okay" to have a Canadian bank account because you have student loans still outstanding and still be a non-resident?
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Mike L.



Joined: 28 Feb 2003
Posts: 519

PostPosted: Sat Apr 19, 2003 7:46 am    Post subject: Reply with quote

Sunpower has hit it on the mark. I'd like to ad a few points.

Of course you can maintin bank acounts in Canada. I've got 2. Why the would the Canadian government want to encourage you to spend your cash elsewhere, default on debts like student loans (as they would be driving you out of the country) and not invest in Canada? Think of what such nonesense would do to Canada's economy.

Of course you don't have to pay taxes in 2 countries! Canada and most OECD countires have reciprocal tax arrangements. If they don't there are procedures for handling it.

I've been in Japan for almost 4 years and never had a problem. I called my local Revenue Canada office, the international one is always busy, and they said I could fill out the form someone mentioned above but that it wasn't necessary. 2 years seemed to be the amount of tine that made you a non-resident back in 2000. Since I don't owe them any money I'm not legally required to file a tax return. My sallary in Japan is of little concern to the Canadian government.

If you owe money though be sure to pay it.

In fact, if I wanted to invest my cash in Canada I would be taxed at the lower foreign investor rate on proffits. It was 25% 3 years ago. Probably less now.

Of course you probably can't use your healthcare card on vacations home asa that might be considered fraud as you are a non-resident. Though by all means be sure to renew your drivers license.

Canada is not a prison. Don't worry about the Canadian government. As long as you are legal and don't owe money everything should be fine.

Good luck!
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Sunpower



Joined: 22 Jan 2003
Posts: 256
Location: Taipei, TAIWAN

PostPosted: Sun Apr 20, 2003 11:46 am    Post subject: Reply with quote

Mike L. wrote:
I called my local Revenue Canada office, the international one is always busy, and they said I could fill out the form someone mentioned above but that it wasn't necessary. 2 years seemed to be the amount of tine that made you a non-resident back in 2000.

I had the same experience after talking to Revenue Canada back in 1998.

The form, I don't think the form was even used back then.

This form is not the be all end all in this situation.

And talk to that accountant! Very Happy
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