Job Discussion Forums

[jen]

I`ve been searching for answers for a while but I`m unhappy with the results. Does anyone have FIRSTHAND info on a situation similar to this:

Year 2003 - worked in japan for about 8 months.
Year 2004 - will have worked for 12 months.

Then Im leaving and going to work in another country. Whats my situation? As you all know, the taxes here are next to nothing but in Canada, on these salaries, would be tons more.

I`m hearing so many conflicting things. I won`t lie to the government but I want to know if theres any way to protect my hard-earned money.

Thanks for any help.

[Mike L.]

Go to the REV Can website and fnd the non-resident declaration form. It takes a while to fill out and hear back from these people but it's a good idea if you still hold assets or whatever in Canada.

Regardless the Canadian government can't tax you any Japan income if you're residing here as you already pay Japanese taxes..

[Gordon]

[GambateBingBangBOOM]

[Mike L.]

Not true Mike. You can pay Cdn taxes on Japanese income, that's why you apply for non-residency with Rev canada.

Yes, but why would you pay?

Canada and Japan have reciprocal tax treaty. Many other nations have them with Canada too.

This matter of "residency", a rather moot point, considering the OP would have a gaijin card and tax slips.

I included this info in my application and was acknowledged a non-resident.

I own property in Canada. Send money there all the time. Have a bank account etc etc..

I pay the non-resident tax rate on proffits from income sources in Canada only minus expenses.

To the OP you won't have to pay any tax. The moment you became a resident you tax liabilites are to the Japanese government only.

You can "opt" to file but unless you have income sources in Canada, like me, why tell the Canadian government what your making here?

Just do the non-residency form.

[Gordon]

I thought a reciprocal tax treaty meant that both nations knew what it's citizens earned in each other's country and that the taxes could be deducted. For example if I earn $50,000 in Japan, I pay about $2,500 (5%) in Japan. If I return to Canada and and was not a non-resident, I will pay taxes on that $50,000 less the tax I have already paid in Japan. So if the Cdn taxes say I must pay $15,000 in taxes to them, they'll deduct the $1,500 already paid in Japan and now I will owe Rev Canada $13,500. Hope it doesn't sound too confusing. Now I don't know for certain if this is the truth, but this is what I understand from my conversations with Revenue canada.

Of course if I don't have to pay that extra amount I won't. Just becoming a citizen of Japan does not automatically mean you aren't a resident of Canada. If non-residency was automatic, than why would people have to apply to become one?

[Mike L.]

I thought a reciprocal tax treaty meant that both nations knew what it's citizens earned in each other's country and that the taxes could be deducted.

This link explains the main purpose of Canada's tax treaties, mainly to "avoid double taxation and avoidance."

Looks like we've got over 100 and of course they are not all the same ..

http://www.ccra-adrc.gc.ca/tax/nonresidents/treaty-e.html

Just becoming a citizen of Japan does not automatically mean you aren't a resident of Canada. If non-residency was automatic, than why would people have to apply to become one?

I'm sure you meant to write "resident" as Japan isn't very keen about people holding another passport if they've got a Japanese one. It's a process that takes years usually too.

The non-residency is defacto especially if you are residing in Japan.

The only reason you have to apply is to avoid regular tax rates on assests or proffit acruing investments you've got in Canada. If you failed to declare this info and just colected the proffits it could trigger an audit but who knows.

Have a look at the site. I also recomend calling your local tax office. I found them to be more forthcomming and have more time to talk than the peopl at the intenational office where I often have trouble getting anyone on the phone.

Heck you can just go online to the link abouve and print out the forms and send them in with your documentation, photo copy your gaijin card and visa, contract etc, and about 4 months later you'll get a letter saying your a "non-resident" for tax purposes..

[canuck]

There are different degrees of residency. They can tax you on your income in Japan. If you have too many ties back to Canada, they can and will tax you.

[Mike L.]

[quote]There are different degrees of residency. They can tax you on your income in Japan. If you have too many ties back to Canada, they can and will tax you.[/quote]

This will only happen if you a resident of Canada.

If a resident of Japan you pay taxes here.

The tax treaty, in existence since 1986, exists to prevent the double taxation.

For the OP, with the information provided, it's quite obvious for tax purposes they will be a [b]"non-resident"[/b] and thus not pay taxes on their Japan income which is already taxed here.

If you work here year round, pay taxes here, it's near impossible for you to be taxed by the Canadian government on your Japan income. Reporting your income is optional.

IF YOU ACTUALY READ THE INFORMATION ON THE SITE CALL REVENUE CANADA AND LOOK AT (fill out only if necessary) THE FORMS THESE THINGS BECOME SELF EVIDENT.




[/b]

[canuck]

Mike, just because you live in Japan does not make you a resident (according to the tax department). I phone Revenu Canada and talked at length.

[Mike L.]

Mike, just because you live in Japan does not make you a resident (according to the tax department). I phone Revenu Canada and talked at length.

Well then under what circumstances would you be a "non-resident" if not the payment of Japanese taxes, a gaijin card, etc etc?

Are you saying double taxation is possible?

Have you filled out the forms?

[Canuck2112]

http://www.ccra-adrc.gc.ca/E/pbg/tf/nr73/nr73-03e.pdf

Fill this out, send it home, and you're sitting pretty.

[canuck]

[canuck]

[Canuck2112]

Canuck, exactly how many ties did you have to sever? Are there guidelines for this? I still have a canadian credit card and bank account, as well as drivers licence