Job Discussion Forums

[nobuko]

Now I know I was suppose to fill this out a while ago, as in before my arrival to Japan, but I didn't and forgot completely about the forms altogether. Has anyone gone through this procedure before? Have you filled the Determination of Residency status form? Also, were there any other forms that are necessary to complete this process?

I'm not sure I understand why I have to go through such a convoluted process? I have never done taxes in my life (had an accountant back in Canada do them) so my questions may seem a little doltish but I'll ask them anyways. It's about time I learn how this all works.

Does the government have the right to tax my world income for 2008? Will I need to file a Canadian income tax return for each year living outside Canada to report my world income?

Are we considered under the Japanese's treaty? Also are we considered a resident in Japan and not in Canada? Are we subjected to income tax in Japan to our world income (total income in and outside of Canada)? And lastly, does Japan have a tax treaty with Canada? or is that just part of the commonwealth nations.

[lesderuiter]

I actually just posted a similar question on the 'newbie' discussion board earlier today. Someone told me to check out this website...

http://www.cra-arc.gc.ca/E/pub/tg/t4131/t4131-e.html

Revenue and Customs Canada website for taxation while abroad.

As far as I know, the CDN government taxes you when you get back on whatever you earned while abroad since you're still a factual citizen or something. I have heard that there is a way around this, but it involves cancelling your provincial health insurance (and buying travel insurance for your first 90 days back in Canada until your health insurance can be restarted), as well as filling out some form. I'd suggest getting in touch with an accountant though to get all the details, that's what I'm going to do before I leave.

[seanmcginty]

The CRA taxes income based on your country of residence, not on your citizenship.

Basically, while you are resident in Canada you pay taxes on your world income. While you are resident outside of Canada you pay taxes only on your Canadian source income.

For example:

Lets say you spend the first 6 months of the year working in Canada and the second six months living and working in Japan. The income you earned in Canada in the first half would be taxable. The income you earned in Japan would not. But, lets say you have some Canadian investments that you continue to earn income on after you leave the country. You will still have to pay taxes on these even though you are not a Canadian resident because they come from a Canadian source.

Residency is determined by a number of factors. Basically if you just go to Japan to teach English you probably won't have to worry about it, you are not a resident of Canada anymore for tax purposes. However, if you go to Japan but maintain significant ties to Canada (like you continue to maintain a house there, your kids are going to school in Canada, you come back regularly to Canada,etc.) you might still be considered a resident. But for 99.9% of English teachers on one year contracts to teach English in Japan, they don't have anything to worry about.

[Chris21]

[chirp]

[seanmcginty]

[Hoser]

Can't I just say I was backpacking for 3 years and I didn't make any money?

[poohbear]

i thought japan and canada had an agreement wherein if u work in one u dont have to worry about taxes for the other? atleast that's what my accountant said! lol !

[nobuko]