Living in Thailand while keeping Canadian Resident status.

[mikecwm]

My retirement is fast approaching and I'm trying to decide if I should try and keep my Canadian Resident status after moving to Thailand.

With the Tax Free Savings Account it means that can be topped up each year from investment gains - and then withdrawn tax-free.
As a non-resident you can only withdraw from it once - no topping it up again. So dividends will be taxed at 25%. As will CPP and OAS.

So - all you Canucks already living in a land far away from 10ft snow banks, and frozen cars - what do you recommend?

Did you get professional advice before moving?

I'd like to keep my investments and bank accounts in Canada, where I feel less likely to fall into the hands of another Ponzi.

I can't afford to keep a house / apartment here, but could manage a sailboat to come and spend summers on - West Coast.

Any advice for me and my Thai wife, (also a Canadian citizen)?

Edited February 17, 2015 by mikecwm

[metisdead]

Moving to Banking and investments forum.

[JusMe]

As long as you've got property, real or paper, in Canada, Revenue Canada will consider you a resident of Canada. Which means, of course, that you are liable for Canadian tax on your worldwide earnings.

But if your income is Canadian, and you file Canadian income tax, and pay Canadian taxes, you will remain a resident of Canada, at least officially, no matter where you actually spend your time.

Keeping your investments and bank account there probably means you have some address, even if it's a friend's or a post office box. Mine is my accountant's.

[Kerryd]

Getting CCRA to declare you as a "Non-Resident" (for tax purposes) is almost impossible. It is a fight I had with them for 10 years and despite meeting all their criteria (and then some) they still decided I was a "Factual Resident" and subject to full taxation. I actually have 3 years worth of refunds being held now up because they wouldn't process some tax credits until my (latest) Residency Status application was resolved. Even though they denied that application, it seems I have to go back myself and request that each of my last 3 returns be reassessed and have the tax credits properly applied (which I was entitled to regardless of my residency status) !

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html - Non-residents of Canada

So, unless you can convince them otherwise, you will most likely be subject to full, normal taxes just as though you were still in Canada.

http://www.cra-arc.gc.ca/nwsrm/txtps/2014/tt140107-eng.html - Are you a snowbird? Know your Canadian tax obligations

http://www.cra-arc.gc.ca/tx/nnrsdnts/sth-eng.html - Canadian residents going down south

Note that those pages use the US as an example, but it applies to any other country as well.

http://www.advisor.ca/tax/tax-news/how-the-cra-treats-snowbirds-141150 - How the CRA Treats Snowbirds

Which reminds me, I've had the Schedule XIII tax coming off of my pension for years, thinking that if I did that ahead of time it would help with my Residency Status application. Not even remotely. Didn't matter that I'd been out of Canada for 9 years, was living in Thailand, had a Retirement Visa, motorcycles and a house and that all my pay was going into my Thai bank account. Didn't matter that my only ties to Canada were my passport, driver's license and bank account that my pension went into. I was still deemed to be a "factual" resident (with NO explanation as to why).

Another thing to consider is being able to access your funds while in Thailand. Canadian Charter banks will not do wire transfers remotely (i.e. by phone/fax/email) and not via internet banking. You have to physically be in a branch to do a wire transfer (to an overseas account). That was the main reason why I had my pay cheques sent to my Thai bank, as it was too difficult to get the money from Canada to here. (My dad had made an arrangement with his credit union before he moved to Thailand. They still required a signed letter faxed to them before they would do the transfer, but that was also a small office where they pretty much know all their customers by sight and knew dad for 30 years or something. Not sure a larger branch office would have done the same thing.)

I have my returns done by an H&R Block rep in Vancouver. She was familiar with the Overseas Employment Tax Credit and was good at helping me get everything done every year (and dealing with the Revenue Agency). Cost more for them to do the return of course, but the trade-off is less hassles (especially while you are thousands of miles away).

[Kerryd]

Duplicate post

Edited February 17, 2015 by Kerryd

[Chaspul]

Kerryd

I am a Brit and not a tax expert, but over the last 13 years and longer have been dealing with my Canadian wife's monetary affairs. We retired to Thailand just over 6 years ago and before that whilst living in Saudi she was advised by her accountant to extract her RRSP's but we still lost 25%! The Canadian government seems to change the rules every year!

On attaining the age 60 she applied for CPP and again it was taxed at 25%, a few years back the Canadian Tax office sent a letter saying she could be taxed a Canadian resident, (NR5 filled every 5 years as long as a yearly tax form was filled, 30th Jun for non residents) this would give her $11000 personal allowance and meant 0% on her CPP. Anything earned over this would be at the standard tax rates.

November 2012 she attained the age of 65, having no joy with the phone lines, we are 12 hours ahead at present, I contacted the Minister for OAS and an aide phoned us on several occasions, he was willing to talk to me although the rudeness from the original phone lines accused me of "coaching".

The OAs was taxed for over a year at 25% as the taxation department would not accept a revised NR5.

No problem go straight to the top and write to the minister, an aide phoned within 4 days, weekend included.

She stated that if my wife sent in a new 2013 tax return the new form would be exempt of the 25%.

She also stated that this would take 2 to 3 months. The letter was posted last week I will let you know of the results.

When resolved this will mean that my wife pays 0% tax to the Canadian government on her small pensions.

Concerning keeping money in Canada, you require money in a Thai bank account for extensions off stay for your retirement and the interest rates are not too bad at present. Just make sure they can be withdrawn (only losing interest) and are not tied in. Some banks do not report the interest to Thai tax.

Best regards

Chas

[poweratradio]

As long as you've got property, real or paper, in Canada, Revenue Canada will consider you a resident of Canada. Which means, of course, that you are liable for Canadian tax on your worldwide earnings.

But if your income is Canadian, and you file Canadian income tax, and pay Canadian taxes, you will remain a resident of Canada, at least officially, no matter where you actually spend your time.

Keeping your investments and bank account there probably means you have some address, even if it's a friend's or a post office box. Mine is my accountant's.

He might want to continue paying into his health plan while abroad as well. Sounds like he is simply asking about a snow bird type status and it changes nothing as well.

[facthailand]

I'm turning 65 in April. I've applied for the OASP and a small CPP contribution.

Lived in Thailand since 1989. Last filed Canadian taxes around 1976. Understand I may have to start filing if I get the OASP! (<deleted>!)

I do own a vacation house, have an old camper, small bank account. I'm in the opposite conundrum. I'd like to prove residency IF it will get me the Guaranteed Income Supplement, effectively doubling my meagre pensions.

However, I've just discovered one needs to live in the old country 183 days per year. Sounds like prison to me.

Like to know if they'll discount my OASP and CPP 25% because I'm living overseas even though it will be paid into my Canadian bank account.

[Docno]

I'm turning 65 in April. I've applied for the OASP and a small CPP contribution.

Lived in Thailand since 1989. Last filed Canadian taxes around 1976. Understand I may have to start filing if I get the OASP! (<deleted>!)

I do own a vacation house, have an old camper, small bank account. I'm in the opposite conundrum. I'd like to prove residency IF it will get me the Guaranteed Income Supplement, effectively doubling my meagre pensions.

However, I've just discovered one needs to live in the old country 183 days per year. Sounds like prison to me.

Like to know if they'll discount my OASP and CPP 25% because I'm living overseas even though it will be paid into my Canadian bank account.

Wow - I've lived away from Canada for over 15 years now. Never occurred to me that I might one day be eligible for some sort of pension payments (though I'm 'only' 52 now). Also have Australian citizenship ... wonder if I would qualify for anything on that side. Anyway, my plan is to save enough to look after myself, but it would be good to know that there's some sort of safety net out there...

[wotsdermatter]

As a Canadian with CPP and OAS be careful. I have those and CPP told me that if I leave the country for one day more than 6 months, and they find out I am out of the country, they will deduct 25% of CPP for non-residential tax, and cancel OAS. Both can be re-applied for upon return to Canada and they will be reinstated, however any money already deducted or taken away will not be refunded.

[mikecwm]

Thanks for the replies - and info.

No - we won't be Snowbirds - at least 8 or 9 months a year in Thailand (BC summers only last about 2 months at best).

It seems as if being a Resident will be best - tax wise.

The TFSA makes a big difference. We will be able to have up to $50K (if investments have been producing that well) transferred to that after Jan 1 each year - which can be withdrawn later completely tax free.

That will leave both of us with $22,000 tax allowance between us, so easily covering the CPP and OAS I will get (less than 100% as I only have about 25 years in Canada.

I will have a Brit State pension - to be directed to a Thai bank account.

Do the CRA need to know about that? How could they know?

I'm also thinking of buying a cheap apartment - for visits, and which my son can live in, so no problem about being declared a Resident (thanks for your tale Kerryd). Seems like being declared a non-Resident is pretty much impossible anyway.

As for having money transferred to Thailand -as needed. Perhaps an account with the HSBC would help? They do have a branch in BKK.

What about using the ING bank (Now called Orange I think)? Easy to transfer to them from a regular bank - online - perhaps they could then transfer to a Thai bank. I'll check on that.

So keep up the info - this is helping me a great deal.

[mikecwm]

As a Canadian with CPP and OAS be careful. I have those and CPP told me that if I leave the country for one day more than 6 months, and they find out I am out of the country, they will deduct 25% of CPP for non-residential tax, and cancel OAS. Both can be re-applied for upon return to Canada and they will be reinstated, however any money already deducted or taken away will not be refunded.

It's my understanding that if you're still declared as a Canadian Resident - no matter how long you are out of the country, your CPP and OAS continue (you do need 20 years + to get OAS sent overseas).

If you're filling in a tax return each year, then you get the normal $11,000 tax exemption and so pay no tax on CPP or OAS.

No chance of GIS if you live outside Canada though.

It seems the trick is to stay a "Resident" - and fill in a tax return each year.

[wotsdermatter]

What you say is incorrect. As I stated, I called CPP when in Canada a couple of years ago and they told me what I have written. You do not have to believe me but instead check with the Canadian Embassy and you will find I am right. The same goes for OHIP, and most other Provincial medical/hospital coverage. For OHIP, if I am out of province for more than seven months a year then i lose coverage. When I return to Ontario I must reapply and it will be reinstated but I must wait for three months before getting OHIP coverage. If in need of medical/hospital service while out of Province, I pay, get a receipt, translated into English or French, and the money is refunded. They will pay but at a lower rate than what Ontario doctor's receive but usually medical fees are lower out of the country, such as in Thailand. They will not cover a pre-existing condition. OAS and CPP are not sent out of the country by the Canadian Government. Yes, you can fill out an Income Tax Return but do not let them know you are not living in the country.

Sorry to say this, and I am not being facetious, but many people on this forum make false statements because they do not check I ALWAYS check such things because I do not listen to people who do not know, or because they "THINK" they are right. Check this out and let me know if I am wrong or right.

Edited February 17, 2015 by wotsdermatter

[raysonet]

"OAS and CPP are not sent out of the country by the Canadian Government"

Actually one can receive these payments while in another country. For example, Canadians who live in the USA receive their payments as a norm.

One can learn more here..... (http://www.servicecanada.gc.ca/eng/services/pensions/international/payments-outside.shtml). Thailand is listed as a country to which these payments can be directly deposited.

Canada has tax treaties with many nations and I believe Thailand is one.

Further, I am a dual cdn/us citizen living in Canada who is receiving US Soc Security retirement payments (direct deposit into my CDN account). No US tax is deducted from these payments per the tax treaty between USA and Canada. The US social security payments become CDN income which is then taxed at CDN rates. The tax treaty between Canada and Thailand would be good to know more about.

Finally, with tax treaties comes an exchange of information between the different government tax entities. The recent worldwide focus on proper reporting of bank accounts (FBARS for example),IGA's (inter governmental agreements) should encourage all to be forthright in the management of accounts as sooner or later "they" will know if you are practicing due diligence. Also, Canadian Border Services now track entry and exit dates of all those entering and exiting Canada. All countries are hunting tax evaders.

PS: I was engaged to a wonderful Thai lady who didn't want to get married due to her apprehension about coming under the scrutiny of the CRA which taxes on world wide income. She was worried that the Thai government would discover information from the CDN CRA via tax treaty.

PPS: The days of "gaming the system" are over so learn .. learn... learn .. and do it well and do it right.

[Chaspul]

Seems to be a lot of confusion over Canadian tax rules.

Yes the old rules still apply, it used to be, you were considered a Canadian resident if you had five ties ie: house, bank account, library ticket etc. You had to file a tax form every year.

My wife rid herself of these ties many years ago and became completely non resident for tax purposes. On receiving her CPP at age 60 she was taxed at 25%. Until the laws changed and she was allowed to have the full personal Tax allowance ($11000)by filing a form NR5 which lasts 5 years, as long as a tax return is filed every year.

So Canadian expats overseas on CPP and OAS should see the bulk of monies tax free. Any monies above your personal allowance is subject to normal rates of tax.

Must stress the use of Form NR5 for expats to save up to a quarter of your pensions.

Chas

[poweratradio]

I'm turning 65 in April. I've applied for the OASP and a small CPP contribution.

Lived in Thailand since 1989. Last filed Canadian taxes around 1976. Understand I may have to start filing if I get the OASP! (<deleted>!)

I do own a vacation house, have an old camper, small bank account. I'm in the opposite conundrum. I'd like to prove residency IF it will get me the Guaranteed Income Supplement, effectively doubling my meagre pensions.

However, I've just discovered one needs to live in the old country 183 days per year. Sounds like prison to me.

Like to know if they'll discount my OASP and CPP 25% because I'm living overseas even though it will be paid into my Canadian bank account.

If you havn't filed since 1976 you are already in trouble. The law states you must file even if nothing to declare. You also need to have lived in Canada for 20 years to be deemed eligible for living off shore or else all benefits stop after 6 months.

I dare say you are in quite the pickle expecting any benefits. I would suggest to you to do some serious required reading on the Services Canada site specially under the CPP and OAS sections. Regarding guaranteed income supplement that is only available based on income and expenses in Canada. Very hard to get and checked regularily

[Chaspul]

Slightly off the tax subject but still relevant as our pensions monies matter!

Monies can be paid direct to Thailand by Canada and my UK pension funds but why would you want to be subject to enforced monthly currency fluctuations?

When we first thought of retiring to Thailand I set up bank accounts with HSBC in Canada, UK and Thailand, I thought for ease of shifting money at no cost.

Thai HSBC personal banking is now defunct and has left the country, as a foreign bank it was tied to many extra Thai rules. Also I could not set up direct debits for paying utility bills unless living in Bangkok. Hua Hin is only 240 Km away!

Now we wait until currency rates are favorable to transfer money from HSBC Canada, my wife's pension bank to HSBC UK, my pension bank, at no cost.

Again waiting for good rates before transferring to Bangkok Bank London for conveyance to our Bangkok Bank account in Hua Hin.

Flat rate of 15 GBP for up to 10,000 GBP per day, this cap is set by the UK government to avoid money laundering.

Best rate is when sent to Thailand in GBP, not Thai Baht. This process takes 1 to 2 days via internet to arrive in Thailand.

I understand that there is a branch of Bangkok Bank in New York which may be advantageous for our Canadian readers.

As a post script I used to use ATM withdrawals from the UK but find that I am Pounds in now by transferring large amounts into a local account with no Thai ATM charges, unless I am out of my local area, then it is only 10 or 20 Baht.

To reply to another posters concern over world income between married couples of different nationalities. My Canadian wife's tax return has always included my name as spouse but British Citizen taxed at source. Therefore my income is not part of her world income, this is accepted by the tax authorities.

Chas

[mikebike]

Another thing to consider is being able to access banks your funds while in Thailand. Canadian Charter will not do wire transfers remotely (i.e. by phone/fax/email) and not via internet banking. You have to physically be in a branch to do a wire transfer (to an overseas account).

9 years abroad and I have had no issues whatsoever in initiating SWIFT transfers from TD Canada Trust to foreign account remotely.

[Ludacris]

I have a number of points to make about Canadian resident and non-resident status. My perspective is from someone who is living and working in Thailand, but I’m sure some of my points are relevant for retirees as well since there’s many tax advantages for both.

I was able to get non-resident status within a few months of moving to Thailand. The only assets I have in Canada are a bank account and investment accounts (deemed non-resident accounts). I still have my Canadian driver’s license. There is no requirement for non-residents with no Canadian income to file tax returns.

Working and investing while being a tax resident of Thailand provides some of the best tax savings in the world. I make an equivalent Canadian salary here, but when I max out my tax deductible investments (30% of income can be put into LTF’s and RMF’s which are similar to an RRSP) my overall tax rate goes down to less than 10%. Those investments can grow tax free like an RRSP, but when I withdraw them they are also not taxed. Compare that to an RRSP that is taxed at normal rates when you withdraw it (of course you won’t be working so it will be taxed a lower rate, but it’s still taxed nonetheless).

Thailand has no capital gains tax on investments made in the Thai Stock Exchange and Thailand doesn’t tax foreign income unless it is brought into Thailand in the year it is realized. So this means that not only investments I make in Thailand in addition to the tax deductable LTF’s and RMF’s are tax free, but investments I make outside out Thailand are tax free as well. If you choose the jurisdiction you invest in carefully (ie. UK, Singapore, HK), you can also avoid dividend withholding tax. So this means that foreign investments have no capital gains tax and no dividend withholding tax. If you tried investing in the same markets while a resident of Canada, the Canadian Revenue Agency will tax you on those foreign dividends (about 15%).

Yes tax free savings accounts (TFSA) are not available for non-residents, but remember that interest earned is not taxed for non-residents. So if you have GIC’s, etc. there’s no need for a TFSA because it’s tax free anyways.

If you’re retired I would take a look at this scenario: If you become a non-resident, yes you will take a tax hit on your pensions and possibly lose your Old Age Security, but if you can take the one-time 25% tax hit and withdraw your RRSP’s and then invest it tax free for capital gains and dividends for the rest of your life it might be worth it. Depending on the size of your investments and the income received compared to your pension of course.

TD Waterhouse and Virtual Brokers are the only Canadian brokers I’ve found that have no problems dealing with non-residents. Nowadays I use Interactive Brokers most of the time because of their low fees and easy access to worldwide markets. One more thing- if you have investments outside of Canada you will need to plan your estate accordingly, which will probably involve a Thai Will. Canadian Wills can easily be probated in the US if you move assets there (ie. Interactive Brokers).

Of course, spend a few years in Thailand first to make sure it’s for you because it’s definitely not for everybody, and whatever you do never buy property you can never own here. Like I mentioned before, dividends in some markets are tax free so you could invest in REITs or property funds in Singapore and pay no tax.

[mikecwm]

What you say is incorrect. As I stated, I called CPP when in Canada a couple of years ago and they told me what I have written. You do not have to believe me but instead check with the Canadian Embassy and you will find I am right. The same goes for OHIP, and most other Provincial medical/hospital coverage. For OHIP, if I am out of province for more than seven months a year then i lose coverage. When I return to Ontario I must reapply and it will be reinstated but I must wait for three months before getting OHIP coverage. If in need of medical/hospital service while out of Province, I pay, get a receipt, translated into English or French, and the money is refunded. They will pay but at a lower rate than what Ontario doctor's receive but usually medical fees are lower out of the country, such as in Thailand. They will not cover a pre-existing condition. OAS and CPP are not sent out of the country by the Canadian Government. Yes, you can fill out an Income Tax Return but do not let them know you are not living in the country. Sorry to say this, and I am not being facetious, but many people on this forum make false statements because they do not check I ALWAYS check such things because I do not listen to people who do not know, or because they "THINK" they are right. Check this out and let me know if I am wrong or right.

Here we go - straight from the horse's mouth - http://www.servicecanada.gc.ca/eng/services/pensions/international/payments-outside.shtml

Which states, amongst much other information:- "Receiving your Old Age Security (OAS) and Canada Pension Plan (CPP) payments in the local currency can save you money". Thailand is one of the participating countries.

A Non Resident needs to fill in a tax return to avoid the 25% witholding tax - and regain their normal tax excemption of approx $11,000.

Someone who is still registered as a Canadian Resident will have their CPP and OAS sent to their Canadian bank account - what you do with it from there is up to you. A Canadian Resident does not need to live in Canada for a certain number of days a year - that is only to keep your provincial health scheme intact.

Chaspul in his post (#15) has more information about the NR5 form which means you avoid the 25% tax on CPP and OAS for 5 years.

So yes, checking is a wise thing to do.

Edited February 18, 2015 by mikecwm

[blazes]

Thanks for the replies - and info.

No - we won't be Snowbirds - at least 8 or 9 months a year in Thailand (BC summers only last about 2 months at best).

It seems as if being a Resident will be best - tax wise.

The TFSA makes a big difference. We will be able to have up to $50K (if investments have been producing that well) transferred to that after Jan 1 each year - which can be withdrawn later completely tax free.

That will leave both of us with $22,000 tax allowance between us, so easily covering the CPP and OAS I will get (less than 100% as I only have about 25 years in Canada.

I will have a Brit State pension - to be directed to a Thai bank account.

Do the CRA need to know about that? How could they know?

I'm also thinking of buying a cheap apartment - for visits, and which my son can live in, so no problem about being declared a Resident (thanks for your tale Kerryd). Seems like being declared a non-Resident is pretty much impossible anyway.

As for having money transferred to Thailand -as needed. Perhaps an account with the HSBC would help? They do have a branch in BKK.

What about using the ING bank (Now called Orange I think)? Easy to transfer to them from a regular bank - online - perhaps they could then transfer to a Thai bank. I'll check on that.

So keep up the info - this is helping me a great deal.

Don't expect confidentiality from HSBC!!!!!

[JusMe]

Note carefully that any issues of tax returns and income are federal, and completely separate from any issues regarding health programs which are totally provincially administered.

Unless things have changed, CanRev can consider anyone who has a Canadian bank account, definitely investment portfolio, even driver's licence, a Canadian resident for tax purposes. Getting out of that residency is still possible and collecting OAS and CPP (if correctly earned with time in Canada).

Anyone who wants to consider non-residency should very carefully list exactly why they want that status, what the benefits might be, and all of the costs involved. But CanRev can come back to bite you in the butt with a ruling later that your driver's licence constitutes enough of a tie to determine you are a Canadian resident for tax purposes.

As for the border agency telling the tax department about your ins and outs, it's highly unlike. Government departments do not talk to each other, and even requests for information are often met with silence or a demand that the request be accompanied by a court order.

Toss in provincial/federal government departmental relationships, and the chances of the border agency telling your provincial health department about your arrivals and departures is so slim that you're more likely to die before even a request gets a response.

[Ludacris]

Jusme, you should check your facts before commenting. Do you have a Canadian passport? That's also a secondary residential tie, same as a driver's license and bank account. Determining residency status is not as black and white as you make it out to be.

From the Canada Revenue Agency website:

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

"An individual's residency status is determined on a case by case basis and the individual's whole situation and all the relevant facts must be considered.

The relevant facts in determining your residency status include: the residential ties you have in Canada, the purpose and permanence of your stays abroad, and your ties abroad."

Significant residential ties to Canada include:

• a home in Canada;
• a spouse or common-law partner in Canada; and
• dependants in Canada;

Secondary residential ties that may be relevant include:

• personal property in Canada, such as a car or furniture;
• social ties in Canada, such as memberships in Canadian recreational or religious organizations;
• economic ties in Canada, such as Canadian bank accounts or credit cards;
• a Canadian driver's licence;
• a Canadian passport; and
• health insurance with a Canadian province or territory.

"The residential ties you establish or maintain in other countries may also be relevant."

"If you did not have significant residential ties with Canada and you stayed in Canada for less than 183 days in the tax year, you may be considered a non-resident of Canada."

[hogbot]

I'm turning 65 in April. I've applied for the OASP and a small CPP contribution.

Lived in Thailand since 1989. Last filed Canadian taxes around 1976. Understand I may have to start filing if I get the OASP! (<deleted>!)

I do own a vacation house, have an old camper, small bank account. I'm in the opposite conundrum. I'd like to prove residency IF it will get me the Guaranteed Income Supplement, effectively doubling my meagre pensions.

However, I've just discovered one needs to live in the old country 183 days per year. Sounds like prison to me.

Like to know if they'll discount my OASP and CPP 25% because I'm living overseas even though it will be paid into my Canadian bank account.

If you havn't filed since 1976 you are already in trouble. The law states you must file even if nothing to declare. You also need to have lived in Canada for 20 years to be deemed eligible for living off shore or else all benefits stop after 6 months.

I dare say you are in quite the pickle expecting any benefits. I would suggest to you to do some serious required reading on the Services Canada site specially under the CPP and OAS sections. Regarding guaranteed income supplement that is only available based on income and expenses in Canada. Very hard to get and checked regularily

"If you havn't filed since 1976 you are already in trouble."

This is total BS and scaremongering......filing requirements are listed here....

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html

[greytown]

I'm turning 65 in April. I've applied for the OASP and a small CPP contribution.

Lived in Thailand since 1989. Last filed Canadian taxes around 1976. Understand I may have to start filing if I get the OASP! (<deleted>!)

I do own a vacation house, have an old camper, small bank account. I'm in the opposite conundrum. I'd like to prove residency IF it will get me the Guaranteed Income Supplement, effectively doubling my meagre pensions.

However, I've just discovered one needs to live in the old country 183 days per year. Sounds like prison to me.

Like to know if they'll discount my OASP and CPP 25% because I'm living overseas even though it will be paid into my Canadian bank account.

If you havn't filed since 1976 you are already in trouble. The law states you must file even if nothing to declare. You also need to have lived in Canada for 20 years to be deemed eligible for living off shore or else all benefits stop after 6 months.

I dare say you are in quite the pickle expecting any benefits. I would suggest to you to do some serious required reading on the Services Canada site specially under the CPP and OAS sections. Regarding guaranteed income supplement that is only available based on income and expenses in Canada. Very hard to get and checked regularily

"If you havn't filed since 1976 you are already in trouble."

This is total BS and scaremongering......filing requirements are listed here....

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/flng-blgtns/menu-eng.html

Good link which spells out the facts clearly.

[ehw200]

i HAVE A NON RESIDENT STATUS

I HAVE NO TIES TO CANADA EXCEPT FOR MY CPP, OAS, AND PASSPORT

THEY DEDUCT 25% FROM BOTH CHECKS

MY ALTERNATIVE IS TO BECOME A RESIDENT,,,SAVE THE 25% AND REPORT MY WORLD WIDE INCOME (NOT GOING TO HAPPEN)

i KEEP GETTING LETTERS ASKING ME TO START FILING AND SAVE THE 25%,,,THEY SEEM TO THINK i AM STUPID

HOWEVER NOW THAT i AM 67 YEARS OLD,,,HEALTH CARE WHEN I TURN 70 MAY BECOME PROHIBITIVE

i HAVE 3 YEARS TO BLOW ALL MY MONEY AND RETURN TO CANADA AND APPLY FOR WELFARE OR WHATEVER

WHAT PISSES ME OFF IS THAT PEOPLE THAT NEVER WORKED A DAY IN THEIR LIVES GET A BIGGER PENSION THAN i DO

MY PRIVATE PENSION DISAPPEARED WITH BANRUPTCY BY THE COMPANY i WORKED FOR

FOR MY NON RESIDENT STATUS,,,i DID IT THRU MY MEMBER OF PARLIAMENT

BUT MADE SURE i HAD SEVERED ALL TIES FIRST

[JusMe]

Jusme, you should check your facts before commenting. Do you have a Canadian passport? That's also a secondary residential tie, same as a driver's license and bank account. Determining residency status is not as black and white as you make it out to be.

Ludacris, I think you must have confused my post with someone else's. You have given a complete explanation of much of what I said without the sourcing.

Yes, I have a Canadian passport, and yes, I am considered a Canadian resident, and pay taxes there.

We do get some strange posts on here, such as the one in complete caps which says he has non-resident status and has severed all ties with Canada - well, except his passport, and collecting the cash from CPP and OAS. Sounds like some ties to me.

As you said, Ludacris, so much of it is on a case-by-case basis, and "The relevant facts in determining your residency status include: the residential ties you have in Canada, the purpose and permanence of your stays abroad, and your ties abroad."

[mikecwm]

Just has several conversations with both the TD bank - and another poster on here, Mikebike, who has been able to initiate SWIFT transfers from his branch of the TD in Canada while in Thailand.

Unless your daughter is married to the bank manager, you can forget that one.

TD are very insistant that all SWIFT transfers be initiated by someone physically in the bank in Canada.

A solution they came up for me was to open a joint account with someone I trust - move what I want transferred into that, then have the other account holder go in the bank and do the transfer to my bank Thailand.

The TD bank do have other methods on their web page - International Visa debit or credit transfers.

[gerry1953]

An interesting read even if dormant for a year.

My experience as a Canadian resident who is spending up to 2 years outside of Canada (allowed once every 5 years I believe) is it is very difficult to use Canadian Banks to SWIFT money over if you are not present.

My Royal Bank of Canada refuses outright. I found a few ways of getting around this by using the International Remittance or Transfer which was a good rate at $13.50 for up to $2,500 CDN. The problem is that RBC converts your CDN dollars to USD at that days rate (the other day was over $1,800 USD) and refuses to send Canadian dollars - guess who gets stiffed on the exchange rate? You do - once converting to USD and another exchange fee again by the receiving bank in Thailand. The $13.50 good rate RBC gives you has now ballooned to $100!! When I contacted RBC they claimed Thai banks can only receive this money in USD yet I have had not problem sending large sums thru RBC using SWIFT thru a friend in CAD? I suspect this is RBCs way of lining it's own pockets while advertising a great rate.

I am now setting up an account with a Forex company which is a payee at RBC online banking for transfers. I can do a transfer online at RBC from Thailand to my forex account, then have them exchange CAD to THB at a really good rate, then send it to my Thai bank. The forex company charges no fees, my Thai bank now doesn't have to exchange CAD or USD into baht as they received THB. They will charge the usual receiving fees though.

This is a much cheaper, faster alternative and I don't have to be in Canada. There are a few hassles setting up Forex accounts as they have to follow rules to determine you are legitimate, not a terrorist or laundering money. Once you are set up a Forex account you can use them repeatedly and they are less expensive and more convenient than our Canadian Banks. IMO our banks have had it too easy for too long and I welcome competition to exchange money.

[TimR]

On 2/17/2015 at 4:05 PM, Chaspul said:

Seems to be a lot of confusion over Canadian tax rules.

Yes the old rules still apply, it used to be, you were considered a Canadian resident if you had five ties ie: house, bank account, library ticket etc. You had to file a tax form every year.

My wife rid herself of these ties many years ago and became completely non resident for tax purposes. On receiving her CPP at age 60 she was taxed at 25%. Until the laws changed and she was allowed to have the full personal Tax allowance ($11000)by filing a form NR5 which lasts 5 years, as long as a tax return is filed every year.

So Canadian expats overseas on CPP and OAS should see the bulk of monies tax free. Any monies above your personal allowance is subject to normal rates of tax.

Must stress the use of Form NR5 for expats to save up to a quarter of your pensions.

Chas

This might be similar to the NR5 form.  From revenue Canada site.

 

What is a section 217 election?

If you are a non-resident of Canada, Canadian payers have to withhold non-resident tax from qualifying Canadian income paid or credited to you. If the correct amount of tax has been deducted, this non-resident tax is your final tax obligation to Canada on this income. As such, this income is not required to be reported on a Canadian income tax return.

However, you can choose to include all your qualifying Canadian income on a Canadian return and pay tax on this income using an alternative method. If this is the case, you are then "electing under section 217 of the Income Tax Act" and may receive a refund of some or all of the non-resident tax withheld on this income.

If you emigrated from Canada in 2017 the section 217 election would apply to all qualifying Canadian income received after leaving Canada.

If you immigrated to Canada in 2017, contact the CRA for the special section 217 rules that apply to you. To find the CRA address and telephone number that applies to you, see the section "To contact us" in Pamphlet T4145, Electing under Section 217 of the Income Tax Act. 

Qualifying Canadian income

You can elect to file a tax return under section 217 for the following types of Canadian-source income:

• old age security pension; (see the note below)
• Canada Pension Plan and Quebec Pension Plan benefits;
• most superannuation and pension benefits;
• most registered retirement savings plan payments;
• most pooled registered pension plan payments;
• most registered retirement income fund payments;
• death benefits;
• employment insurance benefits;
• certain retiring allowances;
• registered supplementary unemployment benefit plan payments;
• most deferred profit-sharing plan payments;
• amounts received from a retirement compensation arrangement, or the purchase price of an interest in a retirement compensation arrangement;
• prescribed benefits under a government assistance program; and
• Auto Pact benefits.