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Canadian Working Abroad & Taxes

Hello Everyone

Anyone have any advice - planning to move from Canada and start work August 1 for one year in the Dominican where I am paid in USD..how does this work for Canadian tax purposes or what should I do to plan - I understand that I will pay DR tax as well on my DR salary.

Thank You


- yes I will own a property in Canada while I am abroad but I will live in the Dominican for the year
See also
Sorry I can't help on this as I am not up on canadian rules. You may get more info on the Canadian forum!
Ask about an Exit Return...
a declaration that you are leaving the country..
you will pay all taxes up to date.... and be gone

Gone-
that means health care too, but if you are absent beyond 7 months (?)... it cancels...

DR has a tax treaty w/ Canada... reciprocity

ask an Accountant for聽 proper advice

I left in 1995 -- Exit Return etc.....
never re-established residency
I do know you can take a 2 year leave in terms of the medical coverage but that may depend on the province you live in.

Ask a lawyer and or Accountant in Canada for proper advice.
And that you can buy international health coverage

IMG sells it for Sabbaticals etc globally
My wife uses Cigna but has limited US coverage
Hi
What u mean exit and return?
Is it you stay in DR for only 6 month and you come back to Canada and you stay 6 month Nd you go back to DR??
Here is what I heard some Canadians say.聽 You go do your job for one year....don't tell the gov. you left.....don't tell them when you return....don't tell them anything.聽 聽If they ever haul you in...tell them you took a year off to travel.
Stay legal. Speak with a accountant. If you ever get a audit by CRA聽 because you did not declare world wide income, it will cost you a lot more.
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Remember, DR & Canada have a tax treaty... there is no penalty applied

One country's tax is a credit against the other.

The advantage to exiting Canada is that the tax rate goes to ZERO
It's not that easy. There is 2 ways to go. If you declare as a non resident of Canada, there are many rules that apply. You will still have to file taxes with CRA the first year, however the taxes you pay in DR will apply as a credit to Canadian taxes. You may or may not have to pay Canadian taxes. The important thing to remember you still have to file. I filed as a non-resident. I didn't have income from Canadian sources for 2018, but I still had to file for 2018 taxes and declare my world wide income. Since I had declared non resident at the beginning of 2018, I did not pay taxes on my worldwide income. I say again, go see an accountant and stay legal.
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You can write to CRA and ask them to assess your residential situation.聽 If you have significant assets that you are leaving in Canada, sources of income (even pensions), credit cards, bank accounts, family, a house that you can consider your residence when in Canada, a maintained Canadian driver's license, you may be considered a factual resident of Canada.聽 This means for tax purposes, you are a resident of Canada living out of the country.聽 If you are retired and do not have a Dominican income then all of your income tax issues will be Canadian.聽 You can confirm this with your Tax accountant as I am not one.聽 Hope this gives you some options to consider...
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I exited in 1995.... none of the above rigmarole

I had accounting advice - followed it and left
No followup surveillance.

I remember recounting my situation to my old professor聽 at UWO
Don Thain....
He shook his head
Billy, the rest of them pay a fortune to lawyers to accountants, et al
You just did it !!

Yup!
wasn't hard then

The worldwide income rule was 1998....

I had flown the coop by then
Separate question.聽 Is the job you are doing on line or actually "working at a job in the DR"?聽


If you are working at a job in the DR will you have a work visa or legal residency that allows you to legally work in the DR?
Job is in the DR and yes I have a work visa for the year
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Glad to hear you have a work visa.聽 I am surprised that Canada cares about foreign earned income.聽 l thought the US was the only country that did that (along with some obscure African nation).
Canada cares too!聽 Most countries are starting to step up and try to track foreign income.
1998 Canada copied the US model except the rule applies only to RESIDENTS
whereas the US is for CITIZENS.... until you die

Quite a difference.... but otherwise identical

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