ThaiHerbs Posted March 23, 2013 Share Posted March 23, 2013 Hi I am considering changing my "residence status" from Canada to Thailand. I am of course Canadian. I have lived in Chiang Mai for +4 years now and plan on a long term stay here, maybe for life. I am a 65yo healthy male, receive 3 small monthly pensions, and do not plan on working, at least not for income. My concerns or questions are: - do I have to sell my stock investments (small amount) that I have in a RRSP (sell everything and get taxed)? - what are the implications on my pension income / re taxes etc? - I have an inheritance coming in the next few weeks. It is large enough to affect my financial situation positively (but not huge). I am not sure how transferring this money from my Canadian bank to my Thai bank will be best accomplished. Who needs a red flag for money transfers and a useless but time consuming and expensive audit. (I have nothing to hide but nowadays it seems TPTB really stand up and pay attention to money moving across borders). Not sure what else I should be considering and be aware of? I do not own other assets located in Canada, just a small stock market investment in a RRSP broker account. Thanks for any ideas and insights! Doug Link to comment Share on other sites More sharing options...
canuckamuck Posted March 23, 2013 Share Posted March 23, 2013 Basically a credit card and two bank accounts are all I have in Canada, but I failed the requirements to be a non-resident. Canada makes it quite difficult, and Thailand makes it even more difficult to be a resident as well. Good luck, and if you succeed let me know how you managed it. Link to comment Share on other sites More sharing options...
ramrod711 Posted March 23, 2013 Share Posted March 23, 2013 I have 2 pensions from Canada, all I did was file my income tax as a non resident. There was a special form and it couldn't be done electronicaly the first year. Revenue Canada also told me that they might hold back 25% of my Canada Pension for one year, after that I could appeal for a reduction. I guess because one of my pensions is not taxable, they decided to not hold back anything. I wanted to set up an RESP for my grandaughter, the bank told me that there were some securities that I can't buy because of my non resident status, no idea what they are though. 1 Link to comment Share on other sites More sharing options...
ThaiHerbs Posted March 24, 2013 Author Share Posted March 24, 2013 I suppose my next questions are: 1/ what is the benefit of me changing my status to a non-resident of Canada when I am retired with only pension income? 2/ am I obliged to change my residency status when I spend so little time in Canada? I have only been back once for 1 month since I left just over 4 years ago. Perhaps I am best advised to just leave things as they are, however, I am concerned that I am obliged for some reason to make this change. confused Thanks for the 2 comments! Doug Link to comment Share on other sites More sharing options...
chokrai Posted March 24, 2013 Share Posted March 24, 2013 I left Canada 10 years ago and I didnt change anything. I dont think there is a big benifit in becoming a non-resident unless you have a lot of money. I have a accountant that does my taxes every year get all my financial stuff sent to them. Much better to do this dont cut your ties incase you want to go back. 2 Link to comment Share on other sites More sharing options...
hellodolly Posted March 24, 2013 Share Posted March 24, 2013 I have an address in Canada even though I spend little time there. I talked to the tax people and they informed me they would forward 25% of my CPP to Thailand and I could claim here for the refund. I have three pensions all direct deposit and a credit card as well as ATM card to get the money out here. Once a month I go to the bank with draw enough for the month get on the computer and transfer the money from my savings account to my Visa account. Next month I am going to try the AEON machine as I have heard they have a high limit on the amount you can with draw. Supposedly no charge and the exchange rate is the same as a bank. Good information for if I need a small amount some time during the month. For a month supply of money really not worth the effort to save 150 baht. But worth a try for the information. Link to comment Share on other sites More sharing options...
market trader Posted March 24, 2013 Share Posted March 24, 2013 Legally if you leave Canada on a permanent basis the Canadian government says that you are not allowed to have a bank account or any investment accounts in the country. My wife chats with Thai women around the world on a web site called Thai lady inter. On that site there is a Thai lady married to a Canadian and living in Canada who has taken on the job of checking the Canadian government web sites and keeping Thai women married to Canadians informed about government policies. This lady claims that the government web site on pensions says that Canadians who leave the country on a permanent basis are no longer eligible to receive the old age security pension (65 yrs up) 25% of Canada pension will be withheld for taxes. My advice would be not to leave Canada permanently. Maintain ties to the country somehow. Don't forget if you leave you lose your health care. If you lose your health care and go back to Canada you have to wait 90 days before it is re-instated. If you are here in Thailand and suddenly develop cancer. What do you do? Cost of modern day chemotherapy drugs is almost prohibitive for the average person to pay for. Waiting the 90 days for your health care to be reinstated could actually be a death sentence. Link to comment Share on other sites More sharing options...
ThaiHerbs Posted March 25, 2013 Author Share Posted March 25, 2013 Interesting comments and thanks again, but... I just read throught this INCOME TAX ACT Determination of an Individual’s Residence Status http://www.cra-arc.gc.ca/E/pub/tp/it221r3-consolid/it221r3-consolid-e.pdf and it seems that the only reason to apply for non-residence status is to save paying taxes to Canada, or to reduce annual taxes paid on income. Since I am not looking to reduce any taxes I pay (both federal and provincial taxes) and I have no other income, then there is no reason for me to want to change my residence status, and, no reason for Revenue Canada to require me to do so. I think? Doug Link to comment Share on other sites More sharing options...
ramrod711 Posted March 25, 2013 Share Posted March 25, 2013 Legally if you leave Canada on a permanent basis the Canadian government says that you are not allowed to have a bank account or any investment accounts in the country. My wife chats with Thai women around the world on a web site called Thai lady inter. On that site there is a Thai lady married to a Canadian and living in Canada who has taken on the job of checking the Canadian government web sites and keeping Thai women married to Canadians informed about government policies. This lady claims that the government web site on pensions says that Canadians who leave the country on a permanent basis are no longer eligible to receive the old age security pension (65 yrs up) 25% of Canada pension will be withheld for taxes. My advice would be not to leave Canada permanently. Maintain ties to the country somehow. Don't forget if you leave you lose your health care. If you lose your health care and go back to Canada you have to wait 90 days before it is re-instated. If you are here in Thailand and suddenly develop cancer. What do you do? Cost of modern day chemotherapy drugs is almost prohibitive for the average person to pay for. Waiting the 90 days for your health care to be reinstated could actually be a death sentence. If you aren't living in Canada for 6 months plus a day every year and claiming residency to keep your health care you're defrauding the system. Health care is for actual residents. I can't remember the actual number but once every 5-7 years you are allowed to be gone for the year and retain coverage, provided you continue to pay your premiums. As for not receiving old age pension, many of my friends are, and I have been told there is no problem. Just go to your Service Canada acct. and read the information provided. Link to comment Share on other sites More sharing options...
ThaiHerbs Posted March 25, 2013 Author Share Posted March 25, 2013 If you aren't living in Canada for 6 months plus a day every year and claiming residency to keep your health care you're defrauding the system. Health care is for actual residents. I can't remember the actual number but once every 5-7 years you are allowed to be gone for the year and retain coverage, provided you continue to pay your premiums. As for not receiving old age pension, many of my friends are, and I have been told there is no problem. Just go to your Service Canada acct. and read the information provided. I have no health care coverage at all and lost (gave up) my Canadian health care coverage ~4 years ago. No loss. Not that long ago (~50 years) no-one had health insurance, why are we so scared to live and die normally like our grandparents did. Even when in Canada I normally used Naturopathic Doctors and paid for it out of pocket. I am not a fan of North American mainstream medicine which is great at patching broken bones but not much else IMO, prefer self healing via various natural common sense approaches when practical. Thanks! Doug Link to comment Share on other sites More sharing options...
ThaiHerbs Posted March 25, 2013 Author Share Posted March 25, 2013 I should add to my last post that accident insurance is a different matter. Getting smashed up in a car/bike accident can be expensive in any country if major injuries are the result. Doug Link to comment Share on other sites More sharing options...
market trader Posted March 26, 2013 Share Posted March 26, 2013 If you aren't living in Canada for 6 months plus a day every year and claiming residency to keep your health care you're defrauding the system. Health care is for actual residents. I can't remember the actual number but once every 5-7 years you are allowed to be gone for the year and retain coverage, provided you continue to pay your premiums. As for not receiving old age pension, many of my friends are, and I have been told there is no problem. Just go to your Service Canada acct. and read the information provided. I have no health care coverage at all and lost (gave up) my Canadian health care coverage ~4 years ago. No loss. Not that long ago (~50 years) no-one had health insurance, why are we so scared to live and die normally like our grandparents did. Even when in Canada I normally used Naturopathic Doctors and paid for it out of pocket. I am not a fan of North American mainstream medicine which is great at patching broken bones but not much else IMO, prefer self healing via various natural common sense approaches when practical. Thanks! Doug Good for you.. In your wisdom I assume that if and when you become seriously ill here in Chiang Mai you will shun hospitals like the Ram and Sriphat and instead opt for a shaman in Mae Hong Son. Link to comment Share on other sites More sharing options...
ThaiHerbs Posted March 26, 2013 Author Share Posted March 26, 2013 Good for you.. In your wisdom I assume that if and when you become seriously ill here in Chiang Mai you will shun hospitals like the Ram and Sriphat and instead opt for a shaman in Mae Hong Son. "tongue in cheek" or serious? Depends on the "illness" and what local "natural" resources I have confidence in. A moving target. NO CHEMO. NO RADIATION. Lots of scotch (when appropriate of course ), herbs and herbalists as/when available, shamams welcome but must have a thick skin as I ask a lot of difficult/trick questions, and I bite . Doug Link to comment Share on other sites More sharing options...
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