Korean Job Discussion Forums

[bombenhagen]

Another question for the vets here, are we taxed in our home country for money earned in SK? I'm Canadian and don't know if it is the same for all other counties or not. I have a friend working in Qatar and he had to basiclly have no ties, on paper anyway, to Canada so that he would not pay taxes here. Anyone heard of this? He was making over 200K so maybe that doesn't apply to normal folk like us Once again, any help would be great.

[denverdeath]

http://www.cra-arc.gc.ca/tax/nonresidents/common/residency-e.html

Read through the info there. Basically, if you have no primary ties and few/no secondary ties and are in Canada for less than 183 days during the tax year in question, you will most likely be deemed a non-resident(if you fill out the forms for it) for that tax year.

[cruisemonkey]

If you apply for, and are granted nonresidency status, you do not have to pay taxes on your Korean income... otherwise, you have to pay Canadian taxes on your 'world income'.

To be granted nonresidency status, you can have no more than three ties to Canada - one of which is your passport.

[bombenhagen]

Thanks, this is hilarious though:

The residential ties you have or establish in Canada are a major factor in determining residency. Residential ties to Canada include;

a home in Canada
a spouse or common-law partner and dependants who stay in Canada, while you are living abroad
personal property in Canada, such as a car or furniture
social ties in Canada
economic ties in Canada
Other ties that may be relevant include:

a Canadian driver's licence
health insurance with a Canadian province or territory

So Canadian passport, check....drivers licence, check...social ties, check....economic ties(bank account), check....health insurance (everyone does), check

so basically you have to give up your country inorder not to pay taxes here. The question is: how many people actually pay them regardless? Also, if i go through the trouble of becoming a nonresident, and they don't let me sign the forms, am I then condemned to paying taxes because they know where I'm going and what I plan on doing in SK?

[Homer]

Read more carefully bombenhagen,

The site mentions how to limit primary ties and how that will mean you pay no canadian taxes on income earned here.

You do have to eliminate certain primary ties and that makes sense...i.e. a house.

RSSPs are the same...they give you a tax deduction hence you need to pay tax to get the deduction....

My advice, call the relevant government agency and ask.

[denverdeath]

[vox]

Hi,

I just went through this last May as I was in Toronto and I found out that on your Income Tax Form line 256 you can claim all your overseas income for which you paid taxes in the host country. I did that and just got my return back, no problem. But you should keep your stamped paystubs in case you get audited.

I didn't check it out but the RC rep suggested it was new to the 2005 return.

[joyfulgirl]

i never filled out the forms i needed to, the non residency things. i'm lazy and dumb like that. i left canada in dec. 2003, and haven't been back, or thought about canadian taxes since. but apparantly am still tied to it, 'cause i have a bank account (with little money), a passport, and a driver's licence.

i should be more worried about it, i suppose. tho, i met a guy here a few months ago, who left his job at 'tax office canada'...whatever that's called...to come here, and said, yea, i may be breaking a coupla rules, but it was pretty unlikely i'd get into any trouble when i went home, i.e. have to pay anything, 'cause i was a small fish to fry. he was very reassuring.

[Homer]

joyful,
The only real worry you should have is if you filed your taxes in 2003 for the income you earned in Canada prior to leaving. This is only a worry if you owe the Government money.

If not, sleep well at night.

[bombenhagen]

[TECO]

When did the forms for applying for non-residency come out?
I came over in '99 and was told that the government/courts would look at how many ties you had to Canada (i.e., property, investments, cash, etc.).

I haven't filed a tax return in about 7 years.

I'm not eligible for provincial medical insurance now. I don't receive any GST.

T.D. and Royal closed my accounts a few years ago because they weren't being used.

I do have a Royal Bank Credit Card, though.

What's this about "Social" ties? Aha, ha!! So, we can't have any Canadian friends now?

I have:

- a few stocks
- Driver's Licence
- Passport
- Royal Bank Visa

These are my only ties to Canada.

[cuckoo for kimchi]

If you are out of the country (Canada)for 2 years they cannot do anything...you are tax free....if you only stay for one year you can be taxed......A friend of mine stayed here for 1 year...when he went back to canada he had to pay $2000 in income taxes.

[Homer]

cuckoo that is only true if you do not have too many primary ties to Canada.

If you do they can tax your income (if they investigate of course).

To anyone wondering about this...get your facts straight, don't take it from us! Contact Revenue Canada!