If I live in Panama, do I still have to file income taxes for Canada?
Tabitha Paddock - Greenback Expat Tax Services
Canada taxes its residents on their worldwide income every year, and as long as you are still considered a resident, then you must continue to file a Canadian tax return. **Note you may still be considered a resident even if you are no longer physically residing in Canada. This is based on a number of factors, many of which involve the number of ties you still have in Canada after your move.
In order to remove your "residency" (this is not the same as...
Canada taxes its residents on their worldwide income every year, and as long as you are still considered a resident, then you must continue to file a Canadian tax return. **Note you may still be considered a resident even if you are no longer physically residing in Canada. This is based on a number of factors, many of which involve the number of ties you still have in Canada after your move.
In order to remove your "residency" (this is not the same as renouncing your citizenship, just removes your obligation to file in Canada every year), you must file a final "departure tax return" before you go.
If you are no longer considered a resident for tax purposes in Canada, then you will not have to file a Canadian tax return.
Posted April 17, 2013
Yuri Sapozhnikov - Cpanama.com
This would be a good question to ask your accountant since every situation is different.
This would be a good question to ask your accountant since every situation is different.
Posted April 17, 2013
Al Mulaire
Whether or not you still have to file income taxes for Canada if you live in Panama depends. I am not a tax lawyer, but my sources tell me (a university tax law professor) that you not only need to advise the CRA of your "non-resident" status, you also need to cut your ties to Canada. For example, CRA will look at several factors to see if you really are a defacto "resident"; factors like owning a home in Canada, having a business or bank account in...
Whether or not you still have to file income taxes for Canada if you live in Panama depends. I am not a tax lawyer, but my sources tell me (a university tax law professor) that you not only need to advise the CRA of your "non-resident" status, you also need to cut your ties to Canada. For example, CRA will look at several factors to see if you really are a defacto "resident"; factors like owning a home in Canada, having a business or bank account in Canada, even a Canadian drivers license...could tip the balance in the direction of CRA designating you as a "deemed resident" - and taxing you accordingly.
Posted December 11, 2013
Denise Patrick - Panama Roadrunner Secure Transport
If you live in Panama, the answer to if you still have to file your income taxes in Canada is “No and yes.” If you are no longer a resident of Canada, you do not have to file income taxes. If you are still a resident of Canada and you have income in Canada or in Panama, you do have to file. So it depends on what country you are a resident of or what status you have in Canada. So, if you still own a home in Canada or if you have significant holdings and investments, that...If you live in Panama, the answer to if you still have to file your income taxes in Canada is “No and yes.” If you are no longer a resident of Canada, you do not have to file income taxes. If you are still a resident of Canada and you have income in Canada or in Panama, you do have to file. So it depends on what country you are a resident of or what status you have in Canada. So, if you still own a home in Canada or if you have significant holdings and investments, that will tie you to Canada, and then you would have to file income taxes. If you spent 6 months in Canada and 6 months here in Panama, you are definitely going to be filing in Canada. But if you give up your Canadian investments and holdings, and you live full time down here in Panama, then no, you would not be liable for income taxes in Canada.
Neil and I both file returns for 2012. As partners, our 2012 returns were identical. We had filed the CRA paperwork to give up our residency. Revenue Canada refunded me and made Neil pay a very hefty tax bill (on identical income). We had an international tax accountant file the paperwork requesting a review, but the tax accountant was going to end up costing more than the tax bill. Two full years later we got a phone call, here in Panama, from a lady from CRA asking if we would like a refund! Canada does not consider income in Panama as taxable in Canada if you are a non resident.
(Map of Canada, pictured. )
Posted February 8, 2015