International Tax

For those who are moving to or from Canada for good, accepting a temporary assignment outside of the country, studying abroad or just travelling, dealing with Canadian and foreign country taxes can be an incredible hurdle to overcome. More importantly, mistakes can cost a client a great deal.

 

Common questions regarding relocating to a new tax area include:

  • How will I be taxed in Canada?
  • What income is reported in which country?
  • Who will prepare my tax returns?           
  • When are returns due?
  • What factors determine Canadian residency?
  • Will I be subject to Canada pension plan contributions or other contributions in the foreign country?          
  • Will my moving costs be deductible?
  • If my company pays for the moving costs, is that a taxable benefit?   
  • Do I have to sell my home or can I rent it out?
  • What is "tax equalization" and when does it apply?
  • What is Canada's departure tax and will it apply to me?
  • Who In addition to my regular salary, my company is paying me a foreign housing allowance and cost of living allowance (cola) — how are these treated?       
  • What is a "hypothetical tax" and will it apply to me?

 

Employers who are managing an expatriate workforce may also have questions regarding tax implications, such as:

 

  • What obligations do I have to withhold and remit foreign and/or Canadian taxes?
  • Will I still have to issue a T4?
  • Will the company create a "Permanent Establishment" by transferring an employee?

 

Our Tax Consultants can solve all of the sides of expatriate tax issues and concerns. We are able to take all the worries away.