How to file income earned in HK for Canadian Taxes?

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  1. #1

    How to file income earned in HK for Canadian Taxes?

    Hey all,

    I have been working in hk for almost a year now. I am a canadian citizen at the moment but hold a HkId. I haven't declared for non-residency in canada because I assume I will be going back sometime in the future. I realized that by not declaring for non-residency, I have to pay taxes to Canada even if the income is earned in HK. So come April, how would I file the income tax form? My parents in canada would be doing it for me so I have to tell them exactly how to do it.

    Thanks for your help guys!


  2. #2

    Join Date
    Feb 2006
    Posts
    1,650

    I am not sure. I applied for non-residency for tax purposes. However I know that you can deduct your Hong Kong taxes you pay from the tax you will pay in Canada.

    I would email Revenue Canada and check.


  3. #3

    thanks, but if you apply for non-residency, if anytime you want to go back to canada, you would loose all your benefits and such. Am I right?


  4. #4

    Join Date
    Feb 2006
    Posts
    83

    If you declare non-residence than you need to get rid of your ties to Canada. One of them would be your provincial health care, so yes you would loose your benefits.


  5. #5

    Join Date
    Jun 2006
    Posts
    99

    it's important to know that you're just giving up your residency for tax purposes. if you're a canadian citizen, you can return to canada at any point and resume residency (surprising that they'll gladly go back to taking taxes from you).

    unless you have significant ties to canada, i'd suggest thinking about declaring non-residency on your next canadian tax return.


  6. #6

    Join Date
    Aug 2007
    Posts
    8

    I agree. You should most definitely file as non resident and pay HK taxes on your HK income. It is meaningful amount of money as HK taxes are 16% and Can taxes will be much higher....Declaring non resident is for tax purposes only and does not mean you lose your Can citizenship. Just sever your ties and file as non resident. When you decide to go back to Canada, you can reapply for healthcare, licence, bank accounts, etc.


  7. #7

    thanks guys for the info. But if I declare for non-residency, and go back to canada sometime in the near future, how long does it take to resume my residency? Being able to avoid the canadian taxes is very tempting. The thing is I don't want to loose some ties to canada. For example, I often use my bank account and credit cards from Canada. Declaring non-residency will strip me of everything from canada?!


  8. #8

    Join Date
    Jun 2006
    Posts
    99

    it's very subjective. you can keep some ties, but not too many. there's no exact rule as to how many you can keep.

    usually if you keep your bank and credit card, but don't have things such as property, a car, etc. you 'should' be ok.

    as always, typical disclaimers apply, and you should consult a tax lawyer or accountant to make sure you're ok.


  9. #9

    thanks spaceman

    But I don't know if I can still declare for non-residency before the next income tax because my parents is still cashing in the GST returns, so they assume I am still a resident in canada.


  10. #10

    Join Date
    Jan 2007
    Location
    Toronto, Canada
    Posts
    127

    Interesting Thread

    I will be retiring in Hong Kong but was told by a Canadian government employee that I should keep a back account in Canada as it is much easier to have my Canada Pension and Old Age Security money deposited there every month versus having the cheque mailed. She said when HK was under British rule you could have it deposited straight into a HK bank but that stopped in 1997.

    We figure we will probably have to file a yearly tax return just on the money we'll make from the gov't money plus our RIFs.


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