Visitors in Canada Should Do Income Tax Reporting ?

2012-03-31


In Canada, not only Canadian citizen, Permanent Resident, but also some visitors need to report income tax.

For visitor, if you are a deemed resident for tax purposes. you should report income tax, most of time, you will get money back, not pay money to Government if you do not have income but just spent money when you visit or travel in Canada.

So how do you know you are a deemed resident for tax purposes or not ?

You are a deemed resident for tax purposes for the entire tax year if you:

_**- stay in Canada for 183 days or more in that tax year;

  • do not have significant residential ties with Canada; and
  • are not considered a resident of another country under the terms of a tax treaty that Canada has with another country.**_

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The 183-day rule

When you calculate the number of days you stayed in Canada during the tax year, include each day or part of a day that you stayed in Canada. These include:

the days you attended a Canadian university or college;
the days you worked in Canada; and
the days you spent on vacation in Canada, including on weekend trips.
If you lived in the United States and commuted to work in Canada, do not include commuting days in the calculation.

Residential ties

Residential ties include:

a home in Canada;
a spouse or common-law partner or dependents in Canada;
personal property in Canada, such as a car or furniture; and social ties in Canada.
Other ties that may be relevant include:

a Canadian driver's license;
Canadian bank accounts or credit cards; and
health insurance with a Canadian province or territory.

About more detail, please read Canada Revenue Agency official site.