4 ms·
The US is one of the only countries on earth that follow this practice.
by dandermotj 10y ago
The US is one of the only countries on earth that follow this practice.
- ced 10y agoSo does Canada.
- refurb 10y agoTaxing a non-resident citizen's foreign income? No it doesn't. Once you declare yourself a non-resident, you don't even have to file a return anymore.
- ced 10y agoIf the US doesn't acknowledge non-resident status, then you're right, Canada isn't like the US. However, as a Canadian who was "working in a foreign country, for a foreign company, on foreign projects" (in the US) for half a year, I can guarantee you that I had to pay both US and Canadian taxes on that income, and I very thoroughly investigated the case because in spite of all the treaties, I ended up double-taxed for a few thousand dollars' worth.
- jacalata 10y agoYes, the special case in the US tax code is that non-residency does not excuse you from paying taxes to the IRS (although I believe there is a non-residency tax deduction on the first $80k or so).
- refurb 10y agofor half a year That's the key part. I don't know the exact legalese, but you probably still qualified as a Canadian resident. Once you're no longer regarded as a Canadian resident, you no longer owe Revenue Canada anything. It's a clean break. In the US, no matter how long you live outside the country, as a citizen you still need to file a return and pay taxes on foreign income.
- ced 10y agoYep. But it's not just time, to be a "non-resident for tax purposes", you have to close all of your Canadian bank accounts, renounce your government-provided health insurance, etc. I suppose it's not an unreasonable system.