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Residency

Under the Canadian income tax system, your income tax is based on residency; therefore, you need to know your residency status before filling your income tax return in Canada.

If you became a resident of Canada, you must report world wide income regardless of the source of income on your Canadian tax return since you established significant residential ties such as; home, spouse / common law and dependants in Canada.

There are two types of residency:

–          Factual Residents, taxpayers who  ordinarily  live in Canada but spend their winters in warmer counties,  teaching ,  working temporarily outside Canada, going to school in different countries still may be considered a  resident of Canada for income tax purposes.

–          Deemed Residents, taxpayers who live 183 days or more during a taxation year and are residents of another country may be deemed to be resident of Canada if they have not established significant residential ties with Canada to be considered a factual resident. Simply Residents and Deemed Residents pay income tax on worldwide income to Canada.

Matt & Michelle

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