Do we pay taxes on money we send to canada after PR?

[MoeD]

Hi. Planning to move to Canada soon since I got the CoPR, i was wondering about transferring my money there and whether we need to fill any forms to not pay taxes on them? Or by default no taxes on transferred funds?

 

[aamool]

Hi. Planning to move to Canada soon since I got the CoPR, i was wondering about transferring my money there and whether we need to fill any forms to not pay taxes on them? Or by default no taxes on transferred funds?

Money that you earned before you became a PR is considered property, not income, so there are no taxes. You can just transfer to your Canadian bank account. The banks will not withhold anything for tax (which I suppose was your question).

If you have assets held outside Canada (including cash) worth more than $100,000 CAD when you file your taxes, you should report it on the foreign income verification form.

Once you are resident in Canada, your international income is taxable (subject to tax treaties that may lower the burden).

 

[MoeD]

Money that you earned before you became a PR is considered property, not income, so there are no taxes. You can just transfer to your Canadian bank account. The banks will not withhold anything for tax (which I suppose was your question).

If you have assets held outside Canada (including cash) worth more than $100,000 CAD when you file your taxes, you should report it on the foreign income verification form.

Once you are resident in Canada, your international income is taxable (subject to tax treaties that may lower the burden).

Thanks aamool. If I don’t transfer all the money during my landing, should I declare it anywhere for it to be recorded as money earned before PR?

 

[aamool]

Thanks aamool. If I don’t transfer all the money during my landing, should I declare it anywhere for it to be recorded as money earned before PR?

No need, but do have proper records.

One other somewhat technical matter is that if you have money in financial instruments (not as cash) and you sell them after you have landed and are a Canadian tax resident, the capital gains (if any) are strictly speaking supposed to be added to your income for the year. You get some relief due to deemed dispositions on the date you become a tax resident. If you are reasonably comfortable with these matters you can figure them out using CRA documentation - otherwise any tax professional will be able to help sort you out.

All the best.

 

[MoeD]

No need, but do have proper records.

One other somewhat technical matter is that if you have money in financial instruments (not as cash) and you sell them after you have landed and are a Canadian tax resident, the capital gains (if any) are strictly speaking supposed to be added to your income for the year. You get some relief due to deemed dispositions on the date you become a tax resident. If you are reasonably comfortable with these matters you can figure them out using CRA documentation - otherwise any tax professional will be able to help sort you out.

All the best.

Super clear, thank you!