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marlow
Joined: 06 Feb 2005
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 Posted: Sat Sep 12, 2009 12:20 am Post subject: Leaving Korea: Canadian Provincial Tax [VERY SPECIFIC] |
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A person may be resident in Canada for only part of
a year, in which case the person will only be subject to
Canadian tax on his or her worldwide income during the part
of the year in which he or she is resident; during the other
part of the year, the person will be taxed as a non-resident.
Many of the comments in this bulletin apply to
determinations of residence status for provincial, as well as
federal, tax purposes. Generally, an individual is subject to
provincial tax on his or her worldwide income from all
sources if the individual is resident in a particular province
on December 31 of the particular taxation year. |
http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.pdf
underline and bold by me
Well, I'm returning to Canada in early October. Will I have to pay provincial income tax on my January to August income in Korea? I realize I could ask an expert, but I'm hoping someone has experience with a move back to Canada. |
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marlow
Joined: 06 Feb 2005
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| Posted: Sun Sep 13, 2009 8:29 pm Post subject: |
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| Anyone? |
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peppermint
Joined: 13 May 2003
Location: traversing the minefields of caddishness.
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| Posted: Mon Sep 14, 2009 2:49 am Post subject: |
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| it's not nearly that simple- how long were you in Korea, did you file for non residency? (or will you- I did it after I got home) Are you planning to report the income that you earned in Korea. . |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Mon Sep 14, 2009 4:56 am Post subject: |
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The non-residency form is meaningless as some people have pointed out before. The CRA can change their mind on that at anytime without notice.
Korea is a treaty country and that means you don't have to be a non-resident. You just have to establish residency in Korea and you automagically become a deemed non-resident in Canada, which is the same as being a non-resident.
here is a previous thread on it: http://forums.eslcafe.com/korea/viewtopic.php?t=154870&highlight=
No one has brought up the provincial tax before, but it should be covered under the same rules. You can talk to a tax specialist back home if you need to. |
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Cartman
Joined: 30 Jun 2009
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| Posted: Mon Sep 14, 2009 5:08 am Post subject: |
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| crossmr - what are 'ways' to establish residency in Korea? Just physically be here for 2 year+? Do Canadians still have to cancel their healthcare, visa cards, etc...? |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Mon Sep 14, 2009 5:17 am Post subject: |
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| Cartman wrote: |
| crossmr - what are 'ways' to establish residency in Korea? Just physically be here for 2 year+? Do Canadians still have to cancel their healthcare, visa cards, etc...? |
Its more than physically being here.
Check the treaty on the website if you want to be sure. You can search through it and its actually not that long.
Make sure your job took off all appropriate taxes as well. |
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marlow
Joined: 06 Feb 2005
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| Posted: Mon Sep 14, 2009 6:55 am Post subject: |
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I know I'm non-resident.
The only part I'm unclear on is the clause about provincial tax. It seems to say I'm responsible for the whole 2009 tax year if I'm in the province as a resident on December 31st. All or nothing...?  Previous years are clear, obviously, but I did have income in Korea up till August this year, and I'm going home in October. |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Mon Sep 14, 2009 2:57 pm Post subject: |
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| marlow wrote: |
I know I'm non-resident.
The only part I'm unclear on is the clause about provincial tax. It seems to say I'm responsible for the whole 2009 tax year if I'm in the province as a resident on December 31st. All or nothing...? Previous years are clear, obviously, but I did have income in Korea up till August this year, and I'm going home in October. |
I think it is very unlikely you have to pay it. I've never seen anyone from Canada mentioning having to pay that. The part of the tax form where you add and subtract your income is before where you calculate provincial tax. I've never known anyone to calculate two different incomes for provincial and federal tax.
Like I said if you really want to be sure, give H&R block a call. You can use skype it'll be cheap |
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marlow
Joined: 06 Feb 2005
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| Posted: Mon Sep 14, 2009 6:01 pm Post subject: |
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| crossmr wrote: |
| marlow wrote: |
I know I'm non-resident.
The only part I'm unclear on is the clause about provincial tax. It seems to say I'm responsible for the whole 2009 tax year if I'm in the province as a resident on December 31st. All or nothing...? Previous years are clear, obviously, but I did have income in Korea up till August this year, and I'm going home in October. |
I think it is very unlikely you have to pay it. I've never seen anyone from Canada mentioning having to pay that. The part of the tax form where you add and subtract your income is before where you calculate provincial tax. I've never known anyone to calculate two different incomes for provincial and federal tax.
Like I said if you really want to be sure, give H&R block a call. You can use skype it'll be cheap |
Interesting. I'll just wait for when I file 2009. With my income level and deductions it wouldn't be much anyway. The wording is just very strange, though. |
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