Job Discussion Forums

[hlamb]

It's tax time. I have to file because I worked in Canada for three months last year (and I want to get that income tax back!). My question is about my job here in Mexico. Do I have to declare it? If so, do I need documentation of how much I made and how much tax I paid here?

I asked my boss about this. He's Canadian but has been a resident of Mexico for many years so doesn't have much to do with Canada. He had no idea about any of this. He didn't know how much tax he pays on my behalf here and seemed to think I shouldn't tell the Canadian government anything. Thoughts?

Any help would be greatly appreciated!

[Samantha]

You should probably call the Revenue Canada folks and tell them you are working in Mexico. There is a tax agreement in place and you will quite likely be ahead of the game to do it this way (the correct way). They will guide you through the process. Any taxes you pay in Mexico are deductible from your Canadian return. They will advise you based on your length of stay out of the country, plus there is alot of information on the Govt website about the procedure.

It's a little scary that your boss doesn't know how much in taxes he pays on your behalf. (That doesn't sound right) You need to have that information to file your Canadian taxes unless you have yourself declared as a non-resident, something Revenue Canada has to authorized based on your personal circumstances.

[hlamb]

Thanks Samantha,

I had a family member check with a tax lawyer and he suggested I do it properly as well, which is what I wanted to do. I am still considered a resident. Someone is bringing all the forms to me here, along with the lawyer's advice.

My boss said he would ask his accountant but he seemed reluctant and kept repeating that I don't have to pay taxes in Canada since I don't live there and not to bother doing anything. Obviously that's wrong, especially since I have to declare my Canadian income for the first few months of the year.

Does anyone know roughly what percentage of our income we pay in taxes here in Mexico?

Thanks!

[ls650]

[samizinha]

It's confusing! I talked to Revenue Canada this year, as I am going to list myself as a non-resident. I had to pay taxes for my Canadian income last year... Revenue Canada told me that I decide myself if I am a non-resident (according to a list they provide on the net), and just check a box on my forms. If they decide to check up on me, then I have to prove that I am indeed not living in the country anymore. It seemed a little too simple so I've kept everything related to my fianances.
I don't know if this would help at all, probably best to talk to the Gov. If you falsely report your taxes, you may have a friendly audit for the rest of your life.

[hlamb]

I've got all my tax forms now and should have no trouble with the Canadian portion of my taxes. Thanks everyone. I've now got a question about the Mexican side of things-see the thread on Mexican taxes.