Posted on: 26-01-05 09:56:36
Hi,
I landed in Canada on 15 March 2003 as immigrant with my wife from USA (was on H1B1 visa) and after getting Canadian PR and opening a bank account, I came back to USA and staying & working in USA since then. I always filed my US taxes but did not file any Canadian Taxes yet.
I have twin babies in my family now and I am planning to move to Windsor with my family next month (Feb’2005) and commute to Detroit for work daily on H1B1 visa. Please advice me how to fulfill my tax liabilities in both the countries (US & Canada).
Thanks,
Anurag
usually oone pays taxes in the country of residence . and if you planto
get citizenship of canada it maybe better u pay taxes there. as you can choose .
Quote:
Orginally posted by sobash
usually oone pays taxes in the country of residence . and if you planto
get citizenship of canada it maybe better u pay taxes there. as you can choose .
Can't really understand what you are trying to say. Can you elaborate?
Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Orginally posted by anuragkul
Hi,
I landed in Canada on 15 March 2003 as immigrant with my wife from USA (was on H1B1 visa) and after getting Canadian PR and opening a bank account, I came back to USA and staying & working in USA since then. I always filed my US taxes but did not file any Canadian Taxes yet.
I have twin babies in my family now and I am planning to move to Windsor with my family next month (Feb’2005) and commute to Detroit for work daily on H1B1 visa. Please advice me how to fulfill my tax liabilities in both the countries (US & Canada).
Thanks,
Anurag
Hi Anurag,
US tax is based on Citizenship. If you are a US citizen and earn more than a certain amount of income (I think it's around $ 70,000 p.a.), you pay income tax on your global income whether you live in the USA or anywhere else.
Canadian income tax (like Indian and UK) is based on your residency. If you are not a resident of Canada (as defined by the CRA), you don't pay income tax on your income earned out of Canada.
Take care that you are not a 'factual resident' or 'deemed resident' of Canada, as defined by the CRA, and you should not need to pay income tax.
Having a bank account in Canada is one of the 'ties to Canada' that the CRA considers in proclaiming one a 'factual resident'. However, it should not be a overriding factor and is usually considered together with other 'ties'.
Look up: http://www.cra-arc.gc.ca/tax/nonresidents/menu-e.html
and 5 pages at:
http://www.canadiandesi.com/read.php?TID=3839
Regards - ezrider
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Regards - ezrider
Thank You...
Quote:
Orginally posted by anuragkul
I have twin babies in my family now and I am planning to move to Windsor with my family next month (Feb’2005) and commute to Detroit for work daily on H1B1 visa. Please advice me how to fulfill my tax liabilities in both the countries (US & Canada).
Sorry, dunno how I missed this important part of your question.
To me it looks like that, after you land in Canada and live in Windsor and commute daily to work Detroit, you will need to pay income tax in the USA, as you are earning in the USA, and Canada as well as you and your family will be resident in Canada (Canadian income tax depends on your residency in Canada).
However since you are already paying tax in the USA, to avoid double taxation, Canada has a tax treaty with the USA and your tax in Canada will be not the full amount that a normal resident that earns in Canada will need to pay.
Please lookup: http://www.cra-arc.gc.ca/E/pub/tg/5013-g/5013g-02-04e.html#P150_14967
and call the CRA when you land in Canada to be sure of your tax obligation.
http://www.cra-arc.gc.ca/contact/menu-e.html
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Regards - ezrider
