| View previous topic :: View next topic |
| Author |
Message |
itiswhatitis
Joined: 08 Aug 2011
|
 Posted: Fri Mar 29, 2013 7:05 am Post subject: Canadians-Do I need to claim my capital gains? |
 |
|
I'm starting to do online trading.
I have been in Korea for over 5 years and I plan to stay in Asia
for several more years.
Any insight as to how I would claim income from buying and
selling stock?
Since I am filing taxes in South Korea do I claim it here?
As an aside, does South Korea actually tax capital gains?
Thanks!!! |
|
| Back to top |
|
 |
hack
Joined: 24 Jan 2003
|
| Posted: Fri Mar 29, 2013 8:59 am Post subject: |
|
|
Hopefully you have declared yourself a non-resident of Canada for tax purposes otherwise you could be held responsible for declaring all worldwide income regardless whether it is income or capital gains. If you haven't done this, you must file a tax return in Canada every year even if you are declaring zero income which can be dangerous if they decide to audit you.
The downside to doing this is that those years are not taken into consideration when it comes to calculating your CPP and OAS pensions. I know, retirement is probably a long way away for you but the longer you neither reside nor have income in Canada, the lower your pension incomes will be and also you can not participate in TFSA investments which have become a good way of beating the Canadian tax man on capital gains for investments inside your TFSA.
Sorry but I don't know the answer to your question about Korean capital gain taxes. I would strongly urge you to get some advice from someone in the know in Korea and also from a Canadian financial adviser. It will cost you a few dollars but may well be worth it in terms of tax savings especially in Canada. Of course if you never come back to Canada to live, all of this will be moot. |
|
| Back to top |
|
|
ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
|
| Posted: Fri Mar 29, 2013 4:40 pm Post subject: |
|
|
yes, no and maybe.
Where is your account.
Where are you trading (broker based).
Where is the fund based.
Are you still deemed "resident" in Canada (did you fill in your last return and indicate that you were leaving with no plan to return or did you just leave?) (form nr73 is not needed in the process).
. |
|
| Back to top |
|
|
young_clinton
Joined: 09 Sep 2009
|
| Posted: Fri Mar 29, 2013 4:44 pm Post subject: |
|
|
| Wouldn't you have to report the capital gains because you made money off of Canadian businesses? It would have nothing to do with Korean taxes because your capital gain had nothing to do with Korean businesses or working inside Korea. |
|
| Back to top |
|
|
Stan Rogers
Joined: 20 Aug 2010
|
| Posted: Fri Mar 29, 2013 4:50 pm Post subject: |
|
|
| hack wrote: |
Hopefully you have declared yourself a non-resident of Canada for tax purposes otherwise you could be held responsible for declaring all worldwide income regardless whether it is income or capital gains. If you haven't done this, you must file a tax return in Canada every year even if you are declaring zero income which can be dangerous if they decide to audit you.
The downside to doing this is that those years are not taken into consideration when it comes to calculating your CPP and OAS pensions. I know, retirement is probably a long way away for you but the longer you neither reside nor have income in Canada, the lower your pension incomes will be and also you can not participate in TFSA investments which have become a good way of beating the Canadian tax man on capital gains for investments inside your TFSA.
Sorry but I don't know the answer to your question about Korean capital gain taxes. I would strongly urge you to get some advice from someone in the know in Korea and also from a Canadian financial adviser. It will cost you a few dollars but may well be worth it in terms of tax savings especially in Canada. Of course if you never come back to Canada to live, all of this will be moot. |
Considering how OAS and CPP will be tapped out by the babyboomers, there probably won't be much of a pension there for you anyway. By the time you retire, OAS and CPP will be so depleted that they will be paying the same rate as welfare. |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Sat Mar 30, 2013 12:59 am Post subject: Re: Canadians-Do I need to claim my capital gains? |
|
|
| itiswhatitis wrote: |
I'm starting to do online trading.
I have been in Korea for over 5 years and I plan to stay in Asia
for several more years.
Any insight as to how I would claim income from buying and
selling stock?
Since I am filing taxes in South Korea do I claim it here?
As an aside, does South Korea actually tax capital gains?
Thanks!!! |
Where is the site loacated? Is it a Canadian based bank or financial institution? If so, I'd try to get a tax form from the bank and file with the Canadian government for income made there and file with the Korean government for money made here. If it's an international brokerage house of some sort, then it's a tricky one. Ask revenue Canada on the phone. Find out which country taxes capital gains most. I know most Koreans have more restrictions on investing withing Korea or at least did when I first got here. They can only buy American stock as part of an RRSP package or something like that. Leaves them with Samsung stock to buy. (Again what I was told by a Korean several years ago. Not sure now.) Korean bureacracy loves to start taking money once you really start making it from what I've heard in business cirles. (Personally, I'd prefer to keep my English teacher money reported here and my outside investment money reported to Canada. At least, you know what the rules are.) But, don't take my advice. I'm no attorney. I just play one on TV.... |
|
| Back to top |
|
|
itiswhatitis
Joined: 08 Aug 2011
|
| Posted: Sat Mar 30, 2013 7:45 am Post subject: |
|
|
| ttompatz wrote: |
yes, no and maybe.
Where is your account.
Where are you trading (broker based).
Where is the fund based.
. |
I'm researching this as we speak.
Any insight/advice?
I'm looking for a good online brokerage.
Thanks!!! |
|
| Back to top |
|
|
loose_ends
Joined: 23 Jul 2007
|
| Posted: Sat Mar 30, 2013 8:29 am Post subject: |
|
|
| hack wrote: |
Hopefully you have declared yourself a non-resident of Canada for tax purposes otherwise you could be held responsible for declaring all worldwide income regardless whether it is income or capital gains. If you haven't done this, you must file a tax return in Canada every year even if you are declaring zero income which can be dangerous if they decide to audit you.
. |
This isn't true. I left Canada for 5 years and did not declare anything to anyone. When I returned I ignored the 5 years I was away and just started doing taxes for the years I had returned. No problems what so ever. |
|
| Back to top |
|
|
I'm With You
Joined: 01 Sep 2011
|
| Posted: Sat Mar 30, 2013 9:59 pm Post subject: |
|
|
| loose_ends wrote: |
| hack wrote: |
Hopefully you have declared yourself a non-resident of Canada for tax purposes otherwise you could be held responsible for declaring all worldwide income regardless whether it is income or capital gains. If you haven't done this, you must file a tax return in Canada every year even if you are declaring zero income which can be dangerous if they decide to audit you.
. |
This isn't true. I left Canada for 5 years and did not declare anything to anyone. When I returned I ignored the 5 years I was away and just started doing taxes for the years I had returned. No problems what so ever. |
I've heard several Canadians I've worked with say the same thing. And some over the years never even filled in the form declaring non-resident status as no form existed when they left Canada! |
|
| Back to top |
|
|
hack
Joined: 24 Jan 2003
|
| Posted: Sun Mar 31, 2013 10:17 pm Post subject: |
|
|
| loose_ends wrote: |
| hack wrote: |
Hopefully you have declared yourself a non-resident of Canada for tax purposes otherwise you could be held responsible for declaring all worldwide income regardless whether it is income or capital gains. If you haven't done this, you must file a tax return in Canada every year even if you are declaring zero income which can be dangerous if they decide to audit you.
. |
This isn't true. I left Canada for 5 years and did not declare anything to anyone. When I returned I ignored the 5 years I was away and just started doing taxes for the years I had returned. No problems what so ever. |
Oh it's true. Watch what happens when they catch up with you. The Canadian govt is broke and sooner or later there will be a letter in your mailbox that will make you want to puke. I know from experience |
|
| Back to top |
|
|
meangradin
Joined: 10 Mar 2006
|
| Posted: Wed Apr 03, 2013 9:46 pm Post subject: |
|
|
| Quote: |
| Oh it's true. Watch what happens when they catch up with you. The Canadian govt is broke and sooner or later there will be a letter in your mailbox that will make you want to puke. I know from experience |
I just talked to the family accountant and he said that if i have no financial ties to canada and i am not applying for gst refunds and the like, then the money i earn in korea is not subject to taxation in canada. furthermore, i was told that i can fill out the form retroactively if i want to. |
|
| Back to top |
|
|
bobbybigfoot
Joined: 05 May 2007
Location: Seoul
|
| Posted: Mon Apr 08, 2013 6:33 pm Post subject: |
|
|
Declaring "non residency" back in Canada is as simple as checking a box on your tax form. We have a self-assessing system back in Canada, so you do NOT need CRA's approval.
Korea and Canada have an agreement so if you are paying tax in Korea you do not need to pay back in Canada -- this assumes you are a non-resident.
As for capital gains made outside of both Korean and Canada, I have no idea. I would think you would have to claim to one of these two countries. But I'm speculating. |
|
| Back to top |
|
|
I'm With You
Joined: 01 Sep 2011
|
| Posted: Tue Apr 09, 2013 6:15 pm Post subject: |
|
|
| bobbybigfoot wrote: |
Declaring "non residency" back in Canada is as simple as checking a box on your tax form. We have a self-assessing system back in Canada, so you do NOT need CRA's approval.
Korea and Canada have an agreement so if you are paying tax in Korea you do not need to pay back in Canada -- this assumes you are a non-resident.
As for capital gains made outside of both Korean and Canada, I have no idea. I would think you would have to claim to one of these two countries. But I'm speculating. |
Thanks.
Why do Canadians have such a hard time understanding and accepting this? It's really very simple. If you do not work in Canada and pay taxes in South Korea you are considered a non resident. you do not need to apply for this status. In fact the form that people speak about is something that is relatively new. 10 to 15 years ago, such a form did not even exist! |
|
| Back to top |
|
|
Wildbore
Joined: 17 Jun 2009
|
| Posted: Wed Apr 10, 2013 9:44 am Post subject: |
|
|
Most of the info in this thread doesn't address the question.
If you have a trading account in Canada and didn't declare non-residency with your bank/broker, then there is a decent chance the CRA will consider you a resident.
Either trade in Korea, an offshore account, or declare non-residency with your bank. If you trade with a Canadian address at a Canadian bank, then the CRA will find it very suspicious that you are taking capital gains but not filing taxes.
Bottom line is stop trading until you get this straightened out. |
|
| Back to top |
|
|
NilesQ
Joined: 27 Nov 2006
|
| Posted: Wed Apr 10, 2013 10:19 am Post subject: |
|
|
| I'm With You wrote: |
| Why do Canadians have such a hard time understanding and accepting this? It's really very simple. If you do not work in Canada and pay taxes in South Korea you are considered a non resident. you do not need to apply for this status. In fact the form that people speak about is something that is relatively new. 10 to 15 years ago, such a form did not even exist! |
No necessarily so. If you own property in, or have significant ties to, Canada, you may be deemed a resident for tax purposes by Revenue Canada regardless of what you declare. However, this only comes into play if you are audited and they come after you for taxes. Most of us, and the money we represent, arent worth pursuing.
Long story short, generally living and working in Korea will qualify you as a non resident for tax purposes unless you have a home or car in your name in Canada, or have children living there.
According to Rev Can Website:
Residency status
Non-residents
You are a non-resident for tax purposes if you:
�normally, customarily, or routinely live in another country and are not considered a resident of Canada; or
�do not have significant residential ties in Canada; and
◦you live outside Canada throughout the tax year; or
◦you stay in Canada for less than 183 days in the tax year.
What are residential ties?
Residential ties include:
�a home in Canada;
�a spouse or common-law partner or dependants who stayed in Canada;
�personal property in Canada, such as a car or furniture; and
�social ties in Canada.
Other ties that may be relevant include:
�a Canadian driver's licence;
�Canadian bank accounts or credit cards; and
�health insurance with a Canadian province or territory. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
