Canadian taxes while teaching in Thailand

[mkd]

My family and I are moving to Thailand next week and I will be teaching at an international school in bkk. We are Canadian citizens currently receiving child tax benefits from the Canadian govt.

We have been receiving different advice about what to do with revenue Canada. Some have told us to change our address and say that we are no longer living in Canada so that we don't need to pay Canadian taxes on income earned in Thailand. This, however seems to cause problems with health care when we return to Ontario.

Other people have told us to not do anything.

Are there any Canadians who could advise me?

Thanks

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[jrtmedic]

Maybe to late now but why not just ask the Canadian Tax authorities ?

[Apache704]

You still have to do your Income Tax every year for Canada but there are more forms to fill out one of which is your World Wide Income so you have to report your Income while working in Thailand. There is no Tax agreement with Thailand but you will have to report your Income while working here. Also you will be a Non Resident of Ontario after 6 months so eventually you willl lose your entitlilement to OHIP and will have to wait at least 90 days on your return to Canada before you will be able to receive OHIP Benefits again and I also believe you will have to re-apply again for it. Also you may loose your child tax benefits if your children are living here in Thailand with you as you will be considered a non resident of Canada but I am not sure of this. Also you will not be entiltiled to the GST Rebate while you are living here so you have to inform the Government before you leave or you will have to pay it back. When you know the address where you will be staying at in Thailand contact the Canadian Government in Ottawa and ask them to send you the Income Tax forms for a Non-resident of Canada. It's more paperwork but basically the same. Make sure you keep your Bank Account open in Canada and inform them that you will be living in Thailand and might or will be using your Debit Card and or Credit Card while you are there or you will have problems.

[JusMe]

There's a world of difference between the official definitions of resident and non-resident. In order to qualify for the latter, you must divest yourself of anything and everything that links you to Canada, including property, investments, and bank account. A good number of years ago, I knew someone who shipped some excellent saddles out of southern Alberta to a friend's place in Montana so he could claim non-resident status.

You probably want to maintain your residency status in Ontario.

Then the question becomes, just how much do you inform the Canadian government about. If you plan to be away for perhaps less than a couple of years, I'd suggest you tell them nothing. Not where you are, not what you earned.

You file an annual tax return, but do not include anything of your Thai income. You perhaps have some bank interest, or any other kind of income in Canada, which you would include. If anyone asks, you're doing some extended travel overseas. "What's your income there?" "Great luck at some Asian horse races."

You will be taxed in Thailand, but the Canadian government will know nothing of that unless you tell them. Immigration and Revenue do not communicate, so no worry about information being transferred from one ministry to another.

You might even be able to maintain your OHIP, but only if you don't tell them you left for a period of time.

Maintain an address in Ontario, even if it's a post office box or an accountant's office or a family member.

Admitted, a good number of years ago, I spent some time working overseas, so if you want more about my experiences, PM and I'll explain more fully.

[Cheapcharly]

only USA ask non resident to file tax plus file foreign bank report.. i don't know another country on earth who do that...

when u are no more a resident of your home country, you don't need to report anything.

when you work in Thailand, they will tax you directly from you salary that you can claim back the next year.

what I did is to go to thai tax office with the salary form... and in 20 minutes they did everything for me.

[Colabamumbai]

Canadian living and working in Thailand can advise you. P.M. personal message me, click on my photo should do it. How long are you coming for? Are you going to be paid for work? You will be applying for work permits/your school or organization will?

[Colabamumbai]

You still have to do your Income Tax every year for Canada but there are more forms to fill out one of which is your World Wide Income so you have to report your Income while working in Thailand. There is no Tax agreement with Thailand but you will have to report your Income while working here. Also you will be a Non Resident of Ontario after 6 months so eventually you willl lose your entitlilement to OHIP and will have to wait at least 90 days on your return to Canada before you will be able to receive OHIP Benefits again and I also believe you will have to re-apply again for it. Also you may loose your child tax benefits if your children are living here in Thailand with you as you will be considered a non resident of Canada but I am not sure of this. Also you will not be entiltiled to the GST Rebate while you are living here so you have to inform the Government before you leave or you will have to pay it back. When you know the address where you will be staying at in Thailand contact the Canadian Government in Ottawa and ask them to send you the Income Tax forms for a Non-resident of Canada. It's more paperwork but basically the same. Make sure you keep your Bank Account open in Canada and inform them that you will be living in Thailand and might or will be using your Debit Card and or Credit Card while you are there or you will have problems.

Very good reply. Also if you declare that you are a non resident they wil cut your old age (65) pension by 25%. Filing a yearly tax return maybe using a friend to mail it in and his address are all options and not declaring you are out of the country for years at a time.

Edited July 24, 2013 by Mario2008
placed reply outside quote

[smilingbuddah]

I am Canadian getting ready to move to Thailand in August.

I won't be working in Thailand although will be collecting a small pension and living off CDN dividends untill 60 yrs old.

The Canadian International Tax Office told me I will become a Non-Resident of Canada the day I leave Canada.

There is also a little box on my BC income tax form that asks me if i was a resident of BC on Dec 31, 2012 etc.

Not sure if its the same in Ontario although i would suspect it would be.

They also told me that there is a Tax Treaty between the two countrys although I would contact them to explain this a little further,and how it would apply to your specific circumstances.

There is also a NR 73 Form you can download from the CRA website which will give you information regarding Non-Residency in Canada.

you also have the option of sending these forms in to the Govt. amd they will decide if you meet the Non-Res status.

While its true the govt. will take 25 % of your pensions, you can file a NR5 form 1 year before you are applying for your pension where you could get your tax deductions reduced depending on what your taxable income will be for the years you are collecting your pension.

this is just some of the information i got from CRA I hope it can help you

The Canadian International Tax Office phone # is 1.855.284.5946 you can call this number collect from anywere in the world.

S.B.

[Gone]

There's a world of difference between the official definitions of resident and non-resident. In order to qualify for the latter, you must divest yourself of anything and everything that links you to Canada, including property, investments, and bank account. A good number of years ago, I knew someone who shipped some excellent saddles out of southern Alberta to a friend's place in Montana so he could claim non-resident status.

You probably want to maintain your residency status in Ontario.

Then the question becomes, just how much do you inform the Canadian government about. If you plan to be away for perhaps less than a couple of years, I'd suggest you tell them nothing. Not where you are, not what you earned.

You file an annual tax return, but do not include anything of your Thai income. You perhaps have some bank interest, or any other kind of income in Canada, which you would include. If anyone asks, you're doing some extended travel overseas. "What's your income there?" "Great luck at some Asian horse races."

You will be taxed in Thailand, but the Canadian government will know nothing of that unless you tell them. Immigration and Revenue do not communicate, so no worry about information being transferred from one ministry to another.

You might even be able to maintain your OHIP, but only if you don't tell them you left for a period of time.

Maintain an address in Ontario, even if it's a post office box or an accountant's office or a family member.

Admitted, a good number of years ago, I spent some time working overseas, so if you want more about my experiences, PM and I'll explain more fully.

Yes I agree with this post. I am Canadian and have been in Thailand now for 13 years so I am a Non-Resident of Canada. I work all over the world and just last year I worked for 4 months back in Canada so I just filed my income tax as a non-res and had my return deposited into an RBC account that my job made me open in Canada. This did not effect my non-residency in Canada but normally as the above post says, if you plan on becoming a "Non-Res" of CANADA you WILL need to lose all ties to Canada (drivers license, bank accounts, property etc.).

If I were you I would do as suggested and just work here (Thailand) and not report your income at all. If you are still here next year at tax time just do your return online but be aware, if you are out of the country for more then 180 days you need to report that on your return. As said, you can just say you were on extended vacation. I paid 22k CAD for 3 months work last year in Canada and just received my 8,500.00 CAD return. hahaha Hence the reason I moved away from Canada in the first place.

[timber]

The Canadian government used to deduct 25% of my pension, but don't do anymore. I just fill out a Canadian Tax Form

and it will be taxed there if I make enough in income.. They don't worry about my Thai income.

[VocalNeal]

PM sent

[mkd]

Thank you everyone for your thoughts. I am not worried about my pension. I am young and plan to return to Canada in a couple years.

The big question is: "what do we do about the child tax benefits (about $200cdn/month) from the cdn govt"? I am OK with not getting it. But don't want to open a can of worms with the residency issue if I call them. Does anyone know if you are entitled to these if you are traveling for extended periods out of the country? I would rather not get them thab have to pay them back later.

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[VocalNeal]

Did you call Ross?

[JusMe]

I am young and plan to return to Canada in a couple years.

But don't want to open a can of worms with the residency issue if I call them.

The less you tell any government about your private life, the better.

Don't tell 'em anything. Don't tell 'em you left Canada, don't tell 'em you work in Thailand, don't tell 'em anything about child benefits or the colour of your underwear!

Many posters here haven't approached the issue of official residency and non-residency. It's not just a matter of where you might be living. It's a very complex issue, and you can get caught up in the nether regions of bureaucracy if you approach it. Don't!

You should be able to have any benefits simply paid into a bank account, and let them sit. Use a friend's or family members address.

Don't approach or tell either the federal or provincial government anything!