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| *Ostroff, Fair and Company>>>Canada Taxes |
Do Canadians who have businesses in the US but still keep their Canadian citizenship what taxes do they pay.? |
Do Canadians who have businesses in the US but still keep their Canadian citizenship what taxes do they pay.? Canadian taxes are solely based on residency - it begins and ends there. Now, residence is more than just where your house is. If you were to have left Canada, take you home furnishings with you, close your Canadian bank accounts, sell your house, and give up your driver's license, then it is entirely likely that Revenue Canada will no longer consider you to be a Canadian resident after you satisfy the 183 day rule (out of Canada for at least 183 consecutive days in a single calendar year). You don't have to satisfy ALL of the points, but it helps. It is important to at least have the appearance that you are not just trying to claim that you are a US resident to avoid paying the higher Canadian taxes. In the US, as a Canadian resident, you only pay income taxes if you are deemed to be a US resident. (As an aside, US citizens are required to file US taxes regardless of the country of residency - this is a little known but important fact). So short answer, in the first or first two years after the move to the US (depending on when the 183 day rule is satisfied), the individual would have to file both income taxes (although double taxation is avoided through income tax treaties via foreign tax credits). After that point, as long as they remain a US resident, they would only have to file US income taxes. It is important to note that both countries require you to claim world-wide income on the returns. Source(s): I was a Canadian citizen living in the US for four years. I believe they would pay taxes in both countries and vice versa. i dont know but thanks for the points |
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