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PatrickGHBusan
Joined: 24 Jun 2008
Location: Busan (1997-2008) Canada 2008 -
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 Posted: Fri May 25, 2012 4:57 am Post subject: |
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| 12ax7 wrote: |
| Is income tax owed if we earn less than a certain amount? I've been punching numbers into income tax calculators online and it appears that the interest I earn on my recent deposits is too small of an income to be taxable. |
Of course the interest earned is only taxable if it is significant. I should have been clearer! A basic savings account with a low interest rate and a low amount in it (say under 10 000) will not generate enough to be deemed taxable income. It can however, added with other things, be considered enough to link you to Canada from a residency stand point.
Seriously, anyone who wants a concrete answer on this should talk to a specialist that can consider the particulars of their situation. |
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alongway
Joined: 02 Jan 2012
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| Posted: Fri May 25, 2012 6:10 am Post subject: |
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| 12ax7 wrote: |
| PatrickGHBusan wrote: |
Bascially unless you earned income IN Canada (investment interest for example), contributed to a RSSP and resquested a tax break on Canadian earned income or have significant ties to Canada such as property, a car, investments you should not worry too much.
As was advised, file your taxes for the last partial year and if you earned no income in Canada after that AND had no significant ties to Canada, then you have absolutely nothing to worry about.
If in doubt however you can always contact an actual expert in these matters like an accountant who does taxes or a tax attorney....
Good luck with the plan by the way. |
Inform your financial institution of your non-resident status. They'll take care of it for you.
http://www.cra-arc.gc.ca/E/pub/tg/t4061/t4061-11e.pdf |
Don't do that if you bank with PC financial, they will freeze your account. |
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12ax7
Joined: 07 Nov 2009
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| Posted: Fri May 25, 2012 4:01 pm Post subject: |
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| PatrickGHBusan wrote: |
| 12ax7 wrote: |
| Is income tax owed if we earn less than a certain amount? I've been punching numbers into income tax calculators online and it appears that the interest I earn on my recent deposits is too small of an income to be taxable. |
Of course the interest earned is only taxable if it is significant. I should have been clearer! A basic savings account with a low interest rate and a low amount in it (say under 10 000) will not generate enough to be deemed taxable income. It can however, added with other things, be considered enough to link you to Canada from a residency stand point.
Seriously, anyone who wants a concrete answer on this should talk to a specialist that can consider the particulars of their situation. |
Sure, but it's easier and more pleasant to discuss it here than staying up until midnight just to be put on hold by Revenue Canada.
In any case, I'm not concerned about my bank account since it's my only link to Canada.
I'm a permanent resident and so I've established some very strong links here.
Ultimately, I really wouldn't mind having to pay the Canadian government a share of the interest I will earn on my term deposits if one is due (seems only fair, really), not that I think it will earn enough for me to owe them one. It's the paperwork that I don't want to deal with. |
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12ax7
Joined: 07 Nov 2009
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| Posted: Fri May 25, 2012 4:38 pm Post subject: |
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Well, I've tried Revenue Canada's non-resident tax calculator. According to it, no withholding tax is owed on the type and amount of interest that I'm earning.
http://www.cra-arc.gc.ca/esrvc-srvce/tx/prtxiii/menu-eng.html
Either way, my deposits will only come to term in 4-5 years. There's plenty of time for tax laws to change before then. |
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sojusucks
Joined: 31 May 2008
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| Posted: Sat May 26, 2012 1:01 am Post subject: |
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| Stan Rogers wrote: |
| I wouldn't worry about it. They are not the American IRS. |
 Funny stereotype. |
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