Tax on foreign savings

[PEQ2013]

Hi guys!

New PR here. I still have some savings in a foreign country and I am paid interests for that. Do I need to pay taxes for these interests I earn?

Thanks!

 

[steaky]

If you are or would be a non resident of Canada for tax purposes, you don't pay taxes on those income.

 

[torontosm]

Hi guys!

New PR here. I still have some savings in a foreign country and I am paid interests for that. Do I need to pay taxes for these interests I earn?

Thanks!

If you are living in Canada, you would declare and pay tax on all global income, including interest on foreign savings. If you had already paid some tax on said income at the source country, and Canada had a tax treaty with that country, the tax payable could substantially be reduced.

 

[ldn123]

Torontosm is right.
If canada has a tax treaty with your foreign country then you most likely wouldn't have to declare the interest. But think logically, govt won't go after people with undeclared interest of $50. But if its $4000 say and they found out then you may be penalised.

I think the process of 'double tax treaty' is that you only pay tax above what the foreign tax is.
So say in tge foreign country you are taxed 5% on the intrrest which is equivalent to cad 100.
Had the savings been in canada and was chargeable ay say 15% which would be equivalent to cad 300, then you would only pay the difference i.e. 300 payable to canandian govt less 100 already paid to foreign govt.

If your savings are in uk, then don't worry..they have highet taxes so you woildnt have any canadian tax liability on the interest.

 

[PEQ2013]

Ok, thank you very much for the information! I will look into whether Canada has a tax treaty with my home country.