Non-Resident Corporations overpay taxes in Canada
At PVTAX we aim to help you save your hard earned money, save your time, and successfully reach your goal. Whether your goal is to continue your non-resident corporation in Canada or establish it successfully.
Moreover, you can trust that you are being taken care of with tax experts who have over 20 years experience, an outstanding amount of knowledge to benefit you, and official representation on your behalf with CRA. We represent you to make sure that you always get the best results possible.
General information on application of Canadian tax to non-residents:
Canada imposes income tax under the ITA on a taxpayer’s income for each tax year. Canadian residents are taxed on their worldwide income, with few exceptions. Non-residents are subject to Canadian income tax on their Canadian source income.
Furthermore, non-residents who carried on business in Canada during the year or disposed of “taxable Canadian property”, are liable to pay income tax on their Canadian income. Moreover, non-residents are also subject to withholding tax on passive income such as dividends, rent, and royalties from Canadian sources.
Do you have a corporation that is currently resident in Canada?
A person may want to become a resident in Canada based on various regulations. This being said, different residency rules may apply for different types of taxpayers such as:
For instance, a corporation considers being a resident if it is incorporated or legally continued in Canada and not continued in another place. However, an organization that is not incorporated in Canada may still be considered to abide by the tax authorities to be a resident in Canada. Under general legal principles if both central management and control of corporation are decided to be in Canada. Various different considerations apply to make this decision.
Is your organization continuing business in Canada?
Non-residents that continue to do business in Canada are usually required to register for GST/HST reasons, and follow rules which many other businesses in Canada also abide by. There is tax authority guidance that outlines various factors that are to be considered to make this decision.
Nonetheless, this ultimate decision is based on specific facts, and circumstances of each particular non-resident organization. If a non-resident corporation plans to expand its operations into Canada, then GST/HST obligations should be determined in early stages. Additionally, other indirect tax and income tax obligations which assist in limitation of tax opportunities, and management of tax liabilities are to be considered.
If you are interested in establishing your non-resident corporation in Canada, or wish to continue its ongoing business within the country, we at PVTAX can help you do so successfully!
Our experience indicates that non-resident corporations overpay taxes without even knowing. Use our expertise to avoid this unnecessary expense.
Contact us today, and see how we can assist you.