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Many countries, Canada included, have bilateral agreements on only taxing income once. So, if these people you know make money off foreign property, they pay ta
by nzmsv 17y ago
Many countries, Canada included, have bilateral agreements on only taxing income once. So, if these people you know make money off foreign property, they pay taxes on it in the country where it is located. They do not have to pay taxes again in Canada. Which I think is fair: would you want to pay double taxes on your income?
- btilly 17y agoDouble check the relevant treaties. They are often written to say that where double taxation exists, the secondary country may collect their usual tax minus what was paid to the primary. Therefore if the secondary country has a higher tax rate, there is an incentive to keep it off the books. That said, Canadian law tends to tax people on Canadian earnings. (Or at least it did the last time I paid attention, which was admittedly 15 years ago or so.) Which contrasts to US law that taxes US citizens on worldwide earnings (though the US does give a large exemption for foreign sourced income that keeps this from affecting a lot of people).
- potatolicious 17y agoThis is not about double-taxation - but rather that taxes in Canada are higher than just about any place in Asia (for good reason: Canada has considerably more social assistance programs than most Asian countries).