Korean Job Discussion Forums

pglunatic · Joined: 26 Jan 2003

Hello,

I'm thinking of teaching english abroad in either Taiwan or Korea next year. I was wondering if you had to pay taxes in canada on what you save abroad. In other words, its nice that taxes are low abroad but if you have to pay canadian taxes then that affects how much you can save and those low taxes are kinda moot...

Thanks,

Phil

NickRandom · Joined: 19 Jan 2003 Location: Seoul

Canadians paying taxes on overseas income is a common question here, and I'm not going to go into detail rehashing something that's been done to death. Basically, it all depends on if you can claim "non-resident" status or not. For further information, you can check out the "taxes" page of my own website, and you should also read the article posted below:

www.canadiansresidentabroad.com/issues/summer02/article02.html

Good luck!

pglunatic · Joined: 26 Jan 2003

Great, thanks!

IconsFanatic · Joined: 19 Jan 2003

Just wondering what fellow Canadians have chosen to do. Become a non-resident? Remain a resident and pay tax? Remain a resident and claim only a fraction of your true income?

Cheers.

jsmac · Joined: 16 Jan 2003 Location: Gangwon-do

Iconsfanatic:

My plan is to declare nonresidency, and if CCRA rejects my claim for some reason, to not declare my income.

Captain Obvious 2.0 · Joined: 09 Jan 2003

Hotuk · Joined: 10 Jan 2003

As long as you're square with the rules, there's no need to fill out the NR-73 "non residency" form. Don't declare your Korean income - you're under no obligation as a non-resident to do so.

pglunatic · Joined: 26 Jan 2003

Actually I just talked about it with my tax law teacher (I'm a law student...I was just impatient the other day)

The best, if the country you're going to has lower taxes (as most do..) than canada, is try to qualify for non-residency. DON'T send in an NR-73. The NR-73 is analyzed by a computer and doesn't take much to qualify you as a resident, you're much better off pleading your point with a government employee when the time comes. When abroad DON'T declare your taxes AS A NON-RESIDENT of that country!! You must be a resident of somewhere, if you're not a resident of Korea/Taiwan/etc during the work year, you're a resident of Canada.

The government looks for some evidence of residence:
If you have family staying behind in Canada (children, wife/husband) it'll be very hard (read: next to impossible) to convince them that you're not a resident of Canada.

They look for other factors (drivers license, bank account, credit cards, etc.) but if you've completed a tax declaration abroad as a resident of that country without any major links to Canada, you're pretty safe.

VanIslander · Posted: Sat Feb 03, 2007 6:05 pm Post subject:

is this still the case?

jlb · Joined: 18 Sep 2003

But...you can't have been in Canada for longer than 6 months in any given tax year to declare non-residency, right? For example, if I came to Korea in August, I'd still have to pay taxes on that August-December income that I made in Korea.

jewelz · Joined: 25 Sep 2006

I am quite jaded about Canada's tax sytem. Firstly, why the heck would you come to Korea to teach English if you had assets, investments, real estate etc., back home. Revenue Canada are a bunch of crooks anyways. I am definately not someone who believes in following the rules. They just take money you do not have. I would'nt have left Canada if the tax system was normal to begin with. Work to pay 40-50% of your income to fatten the government coffers and finance the country. Of course anyone in their right mind should claim "non-residency" status. For example, my friend's mother is a social worker working abroad in London. She owns a mediocre 'condo' in Canada. Becuase she has a mortgage she has to pay tax to Canada and to England. I think it is ridiculous that she works so hard and pays 'double' tax just to hang onto a shimmer of hope that she will still have her home. This is especially true for divorcees or single parents. How do you think corporations became so rich, they are legally allowed to evade their taxes...

jlb · Joined: 18 Sep 2003

contrarian · Joined: 20 Jan 2007 Location: Nearly in NK

I have not claimed tax exempt status in Canada, but I have it. In 7 years a total of two weeks in Canada. Other connections 2 of my four kids are there. I will likely go back when I retire.

peppermint · Posted: Sun Feb 04, 2007 4:44 am Post subject:

I just dodged the question while I was away, and sent my paperwork off for non residency for the years when I was away- when I got back. Still waitinig on a response, but I'll report back in when I get the paperwork back.

For reference, the only assets I had were things like a drivers licence and a bank acct for student loans to be withdrawn from.

Yu_Bum_suk · Joined: 25 Dec 2004

I haven't told the government of Canada a thing for over five years and nothing's come of it. Go away, come back, don't pay for or file for or say anything about Korea. For all the gov't knows you were on holiday for a year. *beep* Canada.