Transfer money to Canada as a Non-resident + Tax

[Reza_123]

As a non-resident in Canada, I have been living/working in Kuwait since early 2014. I was wondering if at the end of each month, I can transfer a portion of my savings to my bank account in Canada without paying tax, or such transfers will be taxable in Canada at the end of each year?
Many Thanks,

 

[OhCanadiana]

As a non-resident in Canada, I have been living/working in Kuwait since early 2014. I was wondering if at the end of each month, I can transfer a portion of my savings to my bank account in Canada without paying tax, or such transfers will be taxable in Canada at the end of each year?
Many Thanks,

Whether you need to pay taxes depends on your CRA resident status (Which can be different from your immigration / CIC residency status). Just holding a bank account doesn't generate taxes. CRA has details on determining your residency status at http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html which may help you.

 

[PMM]

Hi

As a non-resident in Canada, I have been living/working in Kuwait since early 2014. I was wondering if at the end of each month, I can transfer a portion of my savings to my bank account in Canada without paying tax, or such transfers will be taxable in Canada at the end of each year?
Many Thanks,

.

1. Only if the funds generate interest income will you need to pay taxes on the interest.
2. Being a non residence you might have difficulty opening a Canadian bank account

 

[Reza_123]

“OhCanadiana” and “PMM”, I would like to thank you both for your time and answers.
Fortunately, I did not close my bank account before leaving Canada.
The reason I raised this question is that I heard from one of my colleagues here in Kuwait that as a non-resident, I am only allowed to wire money to my bank account in Canada when I am moving back to the country to settle as a resident. So, from what I hear, I can wire tax free money to Canada as long as I am a non-resident. Is this correct?

 

[OhCanadiana]

“OhCanadiana” and “PMM”, I would like to thank you both for your time and answers.
Fortunately, I did not close my bank account before leaving Canada.
The reason I raised this question is that I heard from one of my colleagues here in Kuwait that as a non-resident, I am only allowed to wire money to my bank account in Canada when I am moving back to the country to settle as a resident.

That sounds like the restrictions placed by some banks on people who are moving to Canada and opens a bank account before moving, But you already have an account so it's a different situation.

 

[etienbjel]

Check your own specific situation, but if you did not close your Canadian bank account then you are likely a resident of Canada for tax purposes, according to the CRA. You will be at risk of an audit, and making deposits into your CDN bank account from a tax-free country probably sets off some loud alarm bells at CRA.

This is the form that CRA try to get people to fill out to determine their residency status: http://www.cra-arc.gc.ca/E/pbg/tf/nr73/README.html

Do not submit it to the CRA. Just fill out a draft and if you can truthfully answer the questions without appearing to be a resident, then you are a non-resident.

 

[etienbjel]

Sorry I'm in the same boat as you (Qatar) and I get a little anxious sometimes about the vague definition of a Canadian resident.

I found this to be helpful:

http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html

I especially like the sentence, "it would be unusual for a single secondary residential tie with Canada to be sufficient on its own to lead to a determination that an individual is factually resident in Canada while abroad".

So, having only a bank account may not make you a resident. However, a bank account + a driver's license or provincial health card might.

 

[Reza_123]

"vague definition of a Canadian resident"...I absolutely agree with you. I keep reading CRA's website and each time I get more confused. I called CRA one more time today with the same question I raised here and they said that they will not tax me if I transfer my saving to Canada as a non-resident, but honestly not sure yet :'(