Savings Abroad

[Berty3000]

Hi,

If I'm a PR in Canada, do I have to pay the Canadian government tax on savings/interest held abroad, even though I am paying tax to my home government already?

Thanks

 

[Investocrat]

Yes, as a Canadian resident, you're required to declare your worldwide income - Canadian and foreign. You will normally get a credit for the taxes already paid in your home country. For instance if the tax levied on your foreign income is $1000 but you have already paid $700 in your home country, then CRA should only be expecting you to pay $300. This is also known as the foreign tax credit and is in place to prevent double taxation. Canada also has tax treaties with some countries which may affect how you report your income from those countries...you can check those out here: www.fin.gc.ca/treaties-conventions/tieaaerf-eng.asp

 

[Wolverine17]

Interesting question,i doubt that its needed to pay taxes for the work outside canada

 

[torontosm]

Interesting question,i doubt that its needed to pay taxes for the work outside canada

It is absolutely needed. Please stop disseminating false information.

 

[Wolverine17]

It is absolutely needed. Please stop disseminating false information.

According to what i have read its not needed unless you have ties in canada,have a look yourself and anyways i wrote i doubt,am not 100 percent sure,i am not disseminating false information

 

[harjotsandhu]

I agree on global income part. You have to declare Global income and pay taxes on it. If you are from a country that has DTAA (Double Taxation Avoidance Agreement) with Canada, then you pay only the difference of higher in second location.
As an example, If according to Canadian tax bracket, you need to pay $300 in taxes and you already paid equivalent of $100 to your home country in taxes, then you need to pay $200 to CRA only.

As an example: India nd Canada DTAA.
http://nriinformation.com/nri_guide/dtaa_india.htm

 

[HamiltonApplicant]

Hi,

If I'm a PR in Canada, do I have to pay the Canadian government tax on savings/interest held abroad, even though I am paying tax to my home government already?

Thanks

There is not tax on Savings and you do not need to report them. Interest from the savings need to be report to CRA, you will not be double taxed if the country where interest accrued has a tax treaty with Canada. If not, you might have to pay tax on interest in Canada too...

 

[torontosm]

There is not tax on Savings and you do not need to report them. Interest from the savings need to be report to CRA, you will not be double taxed if the country where interest accrued has a tax treaty with Canada. If not, you might have to pay tax on interest in Canada too...

You absolutely do need to report savings held overseas if they exceed $100,000.

 

[Berty3000]

If I've spent 2 months in North America, including time in Canada to activate my pr, but not worked there at all and only worked in my home country, do I have to file a Canadian tax return? I've only been a tourist here, apart from activating my pr.

 

[picklee]

You absolutely do need to report savings held overseas if they exceed $100,000.

There is an important difference between reporting accounts that exceed $100k and reporting income on world wide accounts. The OP is asking about the latter, and the answer is that if you are a tax resident of Canada, then you must report and pay taxes on your world wide income, including interest and dividends on international accounts. Reporting accounts exceeding $100k is a separate issue, and has nothing to do with income.

 

[torontosm]

There is an important difference between reporting accounts that exceed $100k and reporting income on world wide accounts. The OP is asking about the latter, and the answer is that if you are a tax resident of Canada, then you must report and pay taxes on your world wide income, including interest and dividends on international accounts. Reporting accounts exceeding $100k is a separate issue, and has nothing to do with income.

Agreed wholeheartedly, but if you go back to my response, I was specifically addressing the previous post where someone wrote "There is not tax on Savings and you do not need to report them". I was clarifying that you do need to report your savings, and the logical extension is what you said that you are subject to tax on all income earned on said savings.

 

[steaky]

If I've spent 2 months in North America, including time in Canada to activate my pr, but not worked there at all and only worked in my home country, do I have to file a Canadian tax return? I've only been a tourist here, apart from activating my pr.

If you buy a income property in Canada, then would need to file a non resident Canadian tax return.