Pre-immigration Tax Planning Before Coming To Canada

Published: 18-11-2022

Pre-immigration Tax Planning Before Coming To Canada

These tips will help you with Pre-immigration Tax Planning before coming to Canada. 

Tip #1 – Identify whether you are a non-resident, a tax resident, or a deemed resident

This is the most important thing you should consider before moving to Canada. Because tax treatment depends on your status, whether you are a Canadian tax resident depends on your situation and the tax treaty between Canada and your country of residence. Many myths surrounding the proclamation or the 183-day rule have been disproven. Our CPA is an immigration expert. They can address any questions you might have regarding your tax residency status.

Tip #2: Make sure you control your current domicile

This area has complex tax laws. Making mistakes can result in serious tax consequences. There are many options to consider before deciding whether to keep your primary residence or rent it out. You should also consider the timing and future housing market outlook before deciding which option is best. We can provide details on the tax implications for each option if you intend to keep your primary residence.

Tip #3 – Learn about the various types of taxable income for Pre-immigration Tax Planning

Canada, unlike many other countries, can tax income in different ways. This is especially true if there is a high capital gain upon arrival. Taxes on capital gains in Canada are only imposed on 50% of them. However, she is only subject to tax on any profits she makes after becoming a Canadian tax resident. This excludes Canadian taxable assets. Canada has different tax rates for dividends, and each type can be subject to different taxes. We can provide a customized assessment to discuss the tax implications of your expected income if you intend to immigrate to Canada.

Tip #4: Calculate your tax credits and savings

Canada is home to many taxes. However, there are many tax credits available and many deductions. Once you arrive in Canada, tax credits like the GST tax credit and provincial sales tax credit, as well as Canadian Child Benefit (CCB), are available. In addition, you can use a portion of the tax deduction to offset income in tax calculations. You can save a lot of taxes in Canada if you understand the tax credit and deduction rules and how to obtain them.

Tip 5 – Report foreign assets

Canadian tax residents must report all taxes worldwide. Additionally, foreign assets from Canada must be reported on multiple tax forms (such as Form T1135). The information you must provide to Canada’s tax authority, the CRA, will vary depending on how much and what type of assets are located abroad. The time it takes to compile and organize information from overseas can be longer than that required for your tax return. To disclose foreign assets on your tax return, contact your CPA.

For advice on gathering the correct pre-immigration tax planning information, contact Canwish Immigration Canadian Regulatory Council (ICCRC), immigration consultants, has highly rated our immigration consultants. New immigrants can count on us for advice and support during their transition to Canada.


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