Wednesday, April 27, 2016

Details Of Canadian Tax Advice For Non-resident Investors

By Angela Allen


There are different systems used by governments of different countries to make sure the manifesto is to the latter. The government makes sure tax is collected by the relevant authorities in order to serve citizens better by building infrastructure and other government services. Canada is one of the countries that charges tax to its residents on any income from the Canadian soil while the Canada Revenue Authority has ways that makes the investment environment of the non-resident investors better; hence, the need for Canadian tax advice for non-resident investors.

We have a system that defines the citizens in order to achieve a greater clarity on tax issues by the relevant revenue collection authority. Primary residence is whereby one have a spouse whom they are registered and recognized by the law as husband and wife and the spouse is supposed to be a Canadian citizen. People who move to Canada and their citizenship is from other countries do invest in different resources in the country and that is why they are called non-residential investors.

Secondary residential ties is whereby one is abided in a certain social group including a religious group and do have personal goods like vehicles and other valid documents like passports which belong to Canada. The relevant revenue authority makes sure every resident is well defined as to have an easy time when it comes to taxation. Citizens are able to pay taxes in a well-defined manner since they know their residential status.

Non-residents do make merry and enjoy tax deductions from the money they do earn through Canadian sources. The non-residents are able to save their money and discover better investments authorities since the revenue authority do make the environment conducive. Residents do pay a twenty-five percentage on the income they do earn in their country though there are cases when the rates do go lower that the defined percentage.

One can file a return under section 216 which is for timber royalties and rental income and for pension income in section 217. When ones Canadian income is subjected to part XIII part deducted by the payer is obligated provided the amount deducted from your residential country and Canada is deducted. Reason behind it is because different countries have different ways of paying tax.

Civil servants who work outside their country precisely Canada are not considered as non-residents, instead, they are called factual or deemed citizens. Deemed or factual citizens are brought together by residential ties. Tax income from the factual and deemed citizens is supposed to be reported to the revenue authority even if they are obtained from different countries and continents.

Canada is supposed to be given tax returns by American citizens who live in the US but do earn their daily bread in Canada. Both the US and Canada has agreements made on taxation whereby people who do earn a living in this country are not supposed to pay any tax hence required to apply for tax relieve. This also happens to American Citizens who do work for companies from similar country and do live in Canada, they have a right to have a duty free income.

Knowledge on invests in Canada is vital for the non-resident investors. Dealing with revenue authorities is easy with the knowledge. Investors do soar to greater heights and save more cash which they invest elsewhere.




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