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Kristinainkorea
Joined: 13 Mar 2009
Location: Korea
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 Posted: Fri Mar 05, 2010 5:09 am Post subject: Canadian taxes |
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Does anyone know what to do about Canadian taxes with money I have made overseas in Korea?
-Thanks |
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Welsh Canadian
Joined: 03 Mar 2010
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| Posted: Fri Mar 05, 2010 1:29 pm Post subject: |
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| I think you are meant to claim it but you can just say you have been on vacation for a year or how ever long. But they can always look at your Canadian bank account if you have been transferring money here. |
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crisdean
Joined: 04 Feb 2010
Location: Seoul Special City
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| Posted: Fri Mar 05, 2010 4:24 pm Post subject: |
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| there is a tax agreement between Canada and Korea, so if you're paying Korean taxes on your income here (and I guarantee you are) then you don't pay Canadian taxes on that income, as to how you're supposed to file it, well I haven't figured that part out, at present I don't include my Korean income on my Canadian tax forms, only the money I earn in Canada, so make sure you keep all your pay slips that have tax decuctions on them just in case you get audited back home. |
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Enigma
Joined: 20 Mar 2008
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| Posted: Fri Mar 05, 2010 6:44 pm Post subject: |
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crisdean
there is a tax agreement between Canada and Korea, so if you're paying Korean taxes on your income here (and I guarantee you are) then you don't pay Canadian taxes on that income, as to how you're supposed to file it, well I haven't figured that part out, at present I don't include my Korean income on my Canadian tax forms, only the money I earn in Canada, so make sure you keep all your pay slips that have tax decuctions on them just in case you get audited back home. |
I don't think this is entirely true. My buddy spent a year working in Australia (who we also have a tax treaty with), and he did everything legitimately with respect to taxes. When he came back, he still had to pay Revenue Canada the difference between the amount of taxes he paid in Australia and the amount he would have paid had he earned that income in Canada (it worked out to be several thousand dollars.)
You didn't say how long you've been out of the country, but your best bet might be to try and claim that you are a non-resident of Canada. You have to fill out a form from Rev Canada's international office and then they will decide whether or not you qualify. That's what I did, but I've been in Asia for almost 5 years now. |
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Kristinainkorea
Joined: 13 Mar 2009
Location: Korea
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| Posted: Fri Mar 05, 2010 7:14 pm Post subject: |
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I've been in Korea since April 2009 and I will be leaving Korea in June this year, but won't be back in Canada until about September because I would like to travel. From what I know so far, when I'm finished in June, I go to an office in Korea to fill out a paper for them to deposit deductions I get back into my Canadian bank account (about $1500). I'm still paying student loans, so I have always gotten tax returns in Canada. I won't be back in time to do taxes myself, so I figure I will just get my Mom to bring in my T4's from jobs I had in Canada before I left in April and a payslip showing what I've made in Korea. If I have to sign anything, I guess she can just mail me the papers and I can mail them back.
My Dad has worked for the UN overseas a few times for a year at a time and he just says to file taxes like I usually do and claim whatever I make overseas with a slip that shows I've been working in Korea. |
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egrog1717
Joined: 12 Mar 2008
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| Posted: Fri Mar 05, 2010 11:29 pm Post subject: |
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Just put "0" down for your world income... How are they going to know?
Does anyone have legit looking paystubs that they could give to the CRS anyway? LOL... All of mine are computer printouts that don't even show where I work LOL... (When I get them, which hasn't been for months now... Working at a PS and my pay is always the same  ) |
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Emark
Joined: 10 May 2007
Location: duh, Korea?
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| Posted: Sat Mar 06, 2010 8:30 am Post subject: |
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| Kristinainkorea wrote: |
I'm still paying student loans, so I have always gotten tax returns in Canada. I won't be back in time to do taxes myself, so I figure I will just get my Mom to bring in my T4's from jobs I had in Canada before I left in April and a payslip showing what I've made in Korea. If I have to sign anything, I guess she can just mail me the papers and I can mail them back.
My Dad has worked for the UN overseas a few times for a year at a time and he just says to file taxes like I usually do and claim whatever I make overseas with a slip that shows I've been working in Korea. |
Don't get your mom to file at all. Just let things go until you get back in the country. When you return, contact CRA and inform them that you were LIVING and working in South Korea. Tell them you were not a Canadian resident during that time period. They will ask you to fill out and send them a something or other 74 form. The income you earned in Canada before leaving for Korea is still your responsibility, but from the day you left to the day you return, you are exempt from paying Canadian tax on income earned in Korea providing you stick to your story about being an non-resident.
I was gone from Canada and never filed with the CRA from 2004 - 2009. When I returned, that something or other 74 form cured all CRA's questions about me. They didn't come looking and were not seeking me out for information about my location and whereabouts and what I was doing. Since I didn't have Canadian employers submitting employment and tax information to the CRA, my tax years simply showed a zero balance.
Hope that helps. |
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egrog1717
Joined: 12 Mar 2008
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| Posted: Sat Mar 06, 2010 5:22 pm Post subject: |
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| Emark wrote: |
| Kristinainkorea wrote: |
I'm still paying student loans, so I have always gotten tax returns in Canada. I won't be back in time to do taxes myself, so I figure I will just get my Mom to bring in my T4's from jobs I had in Canada before I left in April and a payslip showing what I've made in Korea. If I have to sign anything, I guess she can just mail me the papers and I can mail them back.
My Dad has worked for the UN overseas a few times for a year at a time and he just says to file taxes like I usually do and claim whatever I make overseas with a slip that shows I've been working in Korea. |
Don't get your mom to file at all. Just let things go until you get back in the country. When you return, contact CRA and inform them that you were LIVING and working in South Korea. Tell them you were not a Canadian resident during that time period. They will ask you to fill out and send them a something or other 74 form. The income you earned in Canada before leaving for Korea is still your responsibility, but from the day you left to the day you return, you are exempt from paying Canadian tax on income earned in Korea providing you stick to your story about being an non-resident.
I was gone from Canada and never filed with the CRA from 2004 - 2009. When I returned, that something or other 74 form cured all CRA's questions about me. They didn't come looking and were not seeking me out for information about my location and whereabouts and what I was doing. Since I didn't have Canadian employers submitting employment and tax information to the CRA, my tax years simply showed a zero balance.
Hope that helps. |
The only thing you need to watch out for when doing this is that they may ask you to pay back any provincial tax rebate cheques (in Ontario they were called GST rebate cheques... Not sure what they are now with the new HST in place) as non-residents do not qualify for them. |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Sat Mar 06, 2010 6:44 pm Post subject: |
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| Enigma wrote: |
I don't think this is entirely true. My buddy spent a year working in Australia (who we also have a tax treaty with)... |
Not all tax treaties are created equally.
There are 4 statuses you can get as a Canadian citizen while living abroad. I've written about this a couple of times as I did quite a bit of research into it last year. If I recall correctly most people are not non-residents, but deemed non-residents. Not exactly the same thing, but tax wise it works out the same.
found a thread from last year:
http://forums.eslcafe.com/korea/viewtopic.php?t=157818&postdays=0&postorder=asc&start=15 |
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outkast_3000
Joined: 20 Nov 2009
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| Posted: Sun Mar 07, 2010 6:46 pm Post subject: |
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Incredibly helpful thread!
I've been mulling over whether it is necessary for me to file for non-residency formally, but it seems like if I can simply establish that I haven't been living/working in Canada the past 3 years, I won't have to do that.
Out of curiousity, has anyone here actually filed for non-residency? For what reason would one go out and do that? Sorry if it's a dumb question! |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Sun Mar 07, 2010 7:54 pm Post subject: |
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| outkast_3000 wrote: |
Incredibly helpful thread!
I've been mulling over whether it is necessary for me to file for non-residency formally, but it seems like if I can simply establish that I haven't been living/working in Canada the past 3 years, I won't have to do that.
Out of curiousity, has anyone here actually filed for non-residency? For what reason would one go out and do that? Sorry if it's a dumb question! |
Technically speaking you don't file for non-residency.
What you can do is apply to the CRA for their non-binding opinion of whether you are deemed a resident of Canada or not. |
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crossmr
Joined: 22 Nov 2008
Location: Hwayangdong, Seoul
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| Posted: Sun Mar 07, 2010 9:46 pm Post subject: |
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| TheUrbanMyth wrote: |
| outkast_3000 wrote: |
Incredibly helpful thread!
I've been mulling over whether it is necessary for me to file for non-residency formally, but it seems like if I can simply establish that I haven't been living/working in Canada the past 3 years, I won't have to do that.
Out of curiousity, has anyone here actually filed for non-residency? For what reason would one go out and do that? Sorry if it's a dumb question! |
Technically speaking you don't file for non-residency.
What you can do is apply to the CRA for their non-binding opinion of whether you are deemed a resident of Canada or not. |
Which, as I pointed out last year, pretty pointless in Korea. As long as you are out of Canada, and you have a job in Korea, in one way or another you end up being a deemed non-resident or a non-resident. Which means no taxes. The 4 statuses you can get are listed there, but because of the tax treaty deemed resident and factual resident are automatically converted to deemed non-residient so long as you are paying your taxes here. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Sun Mar 07, 2010 10:01 pm Post subject: |
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| crossmr wrote: |
| TheUrbanMyth wrote: |
| outkast_3000 wrote: |
Incredibly helpful thread!
I've been mulling over whether it is necessary for me to file for non-residency formally, but it seems like if I can simply establish that I haven't been living/working in Canada the past 3 years, I won't have to do that.
Out of curiousity, has anyone here actually filed for non-residency? For what reason would one go out and do that? Sorry if it's a dumb question! |
Technically speaking you don't file for non-residency.
What you can do is apply to the CRA for their non-binding opinion of whether you are deemed a resident of Canada or not. |
Which, as I pointed out last year, pretty pointless in Korea. As long as you are out of Canada, and you have a job in Korea, in one way or another you end up being a deemed non-resident or a non-resident. Which means no taxes. The 4 statuses you can get are listed there, but because of the tax treaty deemed resident and factual resident are automatically converted to deemed non-residient so long as you are paying your taxes here. |
It's pretty pointless any road up as all you get is a non-binding opinion which doesn't give you any legal standing.
But it is perfectly possible to be out of Canada and have a job in Korea and STILL be deemed a resident. You don't automatically end up being a deemed non-resident or non-resident...it depends on your ties with Canada. A house or property in Canada may result in the CRA saying you are still deemed a resident and must pay taxes. |
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