Do you know your income tax obligations as an individual in Canada are based on your residence status? If you are a non resident, then the requirements for filing tax can differ from resident individuals. If you are classified as a non resident of Canada, then you are only obligated to pay Federal tax for non residents living in Canada you receive from sources in the country. This includes part XIII tax or part I tax.
Part XIII tax applied to sources of income tax like dividends, pension payments, benefits, rental & royalty payments, old age security pension, RRSP payments, retiring allowances, Canada pension plan and Quebec pension plan, management fees, annuity payments, registered retirement income fund payments.
To make sure that the right portion of tax is deducted by your
Canadian payers. You must notify them that you are a non resident of Canada for
tax purposes and your country of residence. This let's the tax payers deduct
the part XIII tax when income is paid to you at a rate of 25% unless there is a
tax treaty between Canada and your country residence. Also, these amounts are
non refundable and you don't have to file the Canadian tax return to report the
income unless you want to. Generally, taxpayers would elect to file a return if
they had Canadian rental income. If you believe an incorrect amount of part
XIII, tax was deducted, you can contact the CRA directly for further
investigation.
Part I tax deducted by the payers for certain types of income too.
These types of income include employment income and income from a business. If
anyone stops being a resident during the year, that person may be required to
file a Canadian tax to calculate his or her final tax obligations for the year
that you ceased to be a resident.
Canada Child Benefit
As a non resident, you are not eligible to get the Canadian child
benefit unless you are the spouse or common-law partner of a deemed resident
and you meet the Canadian child benefit eligibility needs.
Tax filing due date: your tax return has to be filed on or before -
June 1 of the year after the tax year, June 15 of the year after the tax year
if you or your spouse or common-law in partner carried on a business in Canada
instead of a business whose expenditure are in connection with a tax shelter.
