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parkside1
Joined: 12 Oct 2010
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 Posted: Tue Oct 19, 2010 7:37 am Post subject: Taxation for Canadians while working in Korea |
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Do Canadians have to declare how much they made to the Canadian government while working in Korea for tax purposes?
Any and all links and answers are very appreciated.
Thank you! |
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youtuber
Joined: 13 Sep 2009
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| Posted: Tue Oct 19, 2010 7:42 am Post subject: |
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Yes, you do have to report your income (and pay taxes) if you have significant ties in Canada: ie a house, wife, property, ect.
If you have no significant ties to Canada, you are fine. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Oct 19, 2010 8:04 am Post subject: Re: Taxation for Canadians while working in Korea |
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| parkside1 wrote: |
Do Canadians have to declare how much they made to the Canadian government while working in Korea for tax purposes?
Any and all links and answers are very appreciated.
Thank you! |
Your BEST bet is to file a tax return when you LEAVE Canada and indicate that you are LEAVING the country.
They will ignore you after that unless you have significant ties back to the country (credit cards, mortgage, house, car, etc).
IF you are so inclined you can file a form NR73 (determination of non-residency) but their determination is NOT binding.
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Tue Oct 19, 2010 2:36 pm Post subject: |
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| youtuber wrote: |
Yes, you do have to report your income (and pay taxes) if you have significant ties in Canada: ie a house, wife, property, ect.
If you have no significant ties to Canada, you are fine. |
Due to the tax treaty even if you have significant ties in Canada you do not have to pay taxes on your income there so long as you are paying taxes on your income here. Any factual resident or deemed resident (those with significant ties to Canada) automatically becomes a deemed non-resident per the tax treaty, so long as you can prove residence in Korea during the time.
If you were working in another country which did not have a tax treaty, you'd be on the hook for taxes.
see http://forums.eslcafe.com/korea/viewtopic.php?p=2077346#2077346
and
http://forums.eslcafe.com/korea/viewtopic.php?t=157818&postdays=0&postorder=asc&start=15 |
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youtuber
Joined: 13 Sep 2009
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| Posted: Tue Oct 19, 2010 9:20 pm Post subject: |
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crossmr:
The way that CRA explained it to me, when I phoned, is that the tax treaty just means you won't be taxed twice.
So if you have significant ties to Canada, you will have to pay the 30% (example) Canadian rate on your Korean income.
However, since Korea has already deducted 5% (example), the treaty means that you are on the hook for the remaining 25%
so: Korea's 5% + Different in rates of 25% = Canadian tax rate of 30%
Since the difference in taxes is so huge, CRA will not disregard you (if you have significant ties). You have noticed that your tax rate in Korea is very very low right? |
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Skyblue
Joined: 02 Mar 2007
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| Posted: Tue Oct 19, 2010 9:32 pm Post subject: Re: Taxation for Canadians while working in Korea |
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| ttompatz wrote: |
| parkside1 wrote: |
Do Canadians have to declare how much they made to the Canadian government while working in Korea for tax purposes?
Any and all links and answers are very appreciated.
Thank you! |
Your BEST bet is to file a tax return when you LEAVE Canada and indicate that you are LEAVING the country. |
How do you indicate this? On the tax form? |
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SpiralStaircase
Joined: 14 Feb 2008
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| Posted: Wed Oct 20, 2010 8:13 pm Post subject: Re: Taxation for Canadians while working in Korea |
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| How do you indicate this? On the tax form? |
Back in 2004, it was a checkbox on the first page of the general tax package.
If you plan to be here more than a year, try applying for non-resident status. It took me two years to get it done but it is retroactive. |
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SpiralStaircase
Joined: 14 Feb 2008
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| Posted: Wed Oct 20, 2010 8:18 pm Post subject: |
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| youtuber wrote: |
crossmr:
The way that CRA explained it to me, when I phoned, is that the tax treaty just means you won't be taxed twice.
So if you have significant ties to Canada, you will have to pay the 30% (example) Canadian rate on your Korean income.
However, since Korea has already deducted 5% (example), the treaty means that you are on the hook for the remaining 25%
so: Korea's 5% + Different in rates of 25% = Canadian tax rate of 30%
Since the difference in taxes is so huge, CRA will not disregard you (if you have significant ties). You have noticed that your tax rate in Korea is very very low right? |
This is what I was told as well. |
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