Canada Tax Residence and Foreign Income

Residential ties matter

CRA examines all relevant circumstances. A home, spouse or common-law partner, and dependants in Canada are significant ties; the passport alone does not settle residence.

The 183-day rule is not the only test

Without factual residence, sojourning in Canada for at least 183 days in a calendar year can establish deemed residence for the whole year. Not every presence is sojourning; treaty rules can override this result.

Foreign-income scope

Factual residents generally face worldwide-income taxation for their resident part of the year. Deemed residents normally face it for the whole year. Applicable treaty tie-breakers can instead establish deemed non-residence.

Canadian-source income after leaving

Non-residents can owe Canadian tax on Canadian-source income. Withholding and return requirements depend on the income type; employment, business, rent and pensions do not all follow the same procedure. Tell Canadian payers your residence status and country.