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.
