Korean Job Discussion Forums

[itiswhatitis]

Fellow Canadian expats,

I pay income tax on the income I earn in Asia (not Canadian income tax and I do not file Canadian income tax).

I am soon to be debt free and I plan to invest in some Canadian GIC's.

To keep it simple:

Is it possible to pay tax on only my capital gains in Canada? Would filing in Canada have to be for my income in Asia AND my capital gains in Canada? If possible, I am planning to continue to pay income tax in Asia and to file Canadian tax for only my Canadian capital gains (so paying taxes in 2 places). Since my I make income in Asia and pay income tax in Asia and will have capital gains income in Canada and pay capital gains in Canada it seems logical enough, but who knows.

Thanks in advance.

[ttompatz]

Resident or non-resident status. You cannot be both.

If you take the resident tax rates you pay taxes on your global income with a tax credit for taxes paid in Asia.

If you take the non-resident rate then you pay the non-resident rate on your Canadian income.

GICs would be earned interest income not capital gains. Mutual funds or the like would have dividends and/or capital gains. A discussion with your banker or a tax accountant (in Canada) would be advisable if your GIC investments become substantial.

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[denverdeath]

When it comes to cdn taxes, less ties to canada are better regarding resident/nonresident status. The whole yr out of country is a great start. Passport? Tie. Driver's license? Tie. Rental income? Bigger tie, depending. Interest in bank accts, etc? Tie. I left in '97 deeming myself a nonresident, but revenue canada will bestow upon me the title they wish based upon their criteria, if i ever return. Best advice to avoid higher cdn taxes is to limit ties. Theyre after the big fish, but they sometimes like to make the little fish squirm.