What to Know About Departure Tax When Emigrating From Canada
When it comes to moving to a foreign country, there’re many tax concerns that has to be reassessed which could significantly impact your cash flow position at the move. Every resident of Canada is subject to Canadian income tax on his or her own worldwide income. That means that a Canadian resident has to report not just their Canadian source income, but also all other sources of income from outside Canada. When emigrating from Canada , you will become a non-resident of Canada by filing a final Canadian income tax return for the year of emigration, also known as emigrant tax return. If this is the scenario, you’d no longer be needed to pay income tax on any income that are foreign sourced O(after emigration). You’ll still be needed to pay Canadian income tax on particular Canadian sourced income, which will be dependent on the country in which you want to dwell and the treaty between that country and Canada. Filing a departure income tax return for the year of immigration can be...