24
Nov
2022

Why You Need an Accountant for Your Non-resident Taxes in Canada

November 24th, 2022
Why You Need an Accountant for Your Non-resident Taxes in Canada

Even though you are not a Canadian citizen, you still need to pay taxes in Canada if you are working there or earning income through Canadian sources. Non-resident taxes are much more complicated than personal taxes, and it can be challenging to know how much tax you should be paying or what deductions and credits you may qualify for.

A CPA (Chartered Professional Accountant) can help you navigate the complexities of non-resident taxes in Canada and ensure that you are compliant with all applicable laws. Furthermore, an accountant can advise you on which tax credits and deductions apply to your situation, help you calculate how much tax you owe or should expect to receive back, and answer any other questions or concerns that occur.

Tax Obligations as a Non-Resident in Canada

To be deemed a non-resident for income tax purposes, you must spend fewer than 183 days in Canada and have your primary residence reside in another country. If you meet these criteria, you will likely be subject to Part XIII tax or Part I tax.

Part XIII tax is commonly associated with Canadian investment income, such as rental payments or dividends collected on investments. On the other hand, Part I tax relates to income earned as an employee or business in Canada. In addition to non-resident taxes, you may also be liable for other taxes such as Canadian withholding tax, GST/HST, and provincial sales tax.

If you are unsure of your tax obligations, working with a CPA is essential. At HWGCA, our team of professional accountants can help you understand your tax obligations in Canada. We provide patient, knowledgeable advice for non-resident taxes and will ensure that you are compliant with the Canadian tax system.

Located in Surrey (Cloverdale), British Columbia, since 1971, HWG, Chartered Professional Accountants proudly helps clients throughout the Lower Mainland and across Canada.

Our team of chartered professional accountants provides helpful business and personal tax services. Our continued growth proves the success of our client relationships.

Sources:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html