Individual residents in Canada are liable for Canadian tax on their worldwide income during the period they are residents in Canada. This makes the date of arrival or departure very important. Canada taxes 75% of capital gains and all investments at the full tax rates. Those realities create different priorities for those entering or leaving Canada.
When getting ready for planning, you should consider:
- Which country has the higher tax rate? Usually Canada.
- What time of year should you move to minimize income tax? Partial years often minimize total income tax.
- Foreign pensions and life insurance may trigger unintended tax consequences.
- Have any stock options that have not been exercised?
We have a team that focuses on these issues for people coming to Canada, even if only for work terms, or leaving Canada to work or retire elsewhere.
Call us today to start your planning.