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Old 02-26-2009, 10:36 PM  
exportyourbiz-com
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Join Date: May 2005
Posts: 141
Quote:
Originally Posted by thatgirljudy View Post
Well revenue canada told me I can't be a resident if I am not in the country a minimum amount of time...I have to pay for health care myself, I can not be part of any provincial plans. People that backpack are not residents either, as far as I know. Who knows, maybe I've been filling it out wrong all this time but either way I've paid full taxes to them just because I had a regular salaried (not sub-contract) job with a Canadian company and it was just easiest that way. Now it will be different and I'm not sure how to deal with it.
OK, the situation you fall under is a factual non-resident of canada.

If this is the case (as is such for backpackers & Canadians working abroad) you are still responsible for Canadian taxes on your worldwide earned income.

If you intend to become a deemed non-resident of canada you need to sever all ties, including closing your canadian bank accounts, credit cards, either sell or take with you all your real property and personal affects. You will need to fill out form FM-3 and have a formal disposition of all assets and holdings. If the CRA agrees with this then you will not be on the hook for Canadian income taxes. In order to be given deemed non-redisent status you MUST be able to prove residency in another country.

So in short, you will be filing federal taxes in the same way as a permanent Canadian resident and instead of provincial taxes you will be paying a non-resident surcharge/replacement tax.

Hope this helps.
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