Tax liability in the US
Alien Tax Status
"183-day-rule"
How can I determine my tax liability in Canada?
In order to determine the tax liability in Canada, residency status must first be clarified. In order to decide whether a person has "Residential Ties" and thus is deemed a "Resident," criteria are considered such as domicile, partner, property such as a car or furniture, or social or business connections in Canada. Moreover, possession of a Canadian driving license or a Canadian bank account, as well as current social security in one of the Canadian provinces or territories, may be considered relevant for the determination of the residency status. Residents have unlimited liability for taxation on their worldwide income. Special regulations apply to persons who do not meet any of the criteria above or similar criteria, and who have, according to the "183-day-rule," spent more than 183 days during the calendar year in Canada. These persons can become "Deemed Residents" and as such have unlimited tax liability, unless they are regarded "Deemed Non-Residents" according to a Taxation Convention with Canada.
How do I determine my residence status?
A person can be deemed "Resident" within one calendar year, if she/he holds Canadian citizenship or she/he is deemed "Resident" due to his/her physical presence in Canada for at least 183 days. According to Article 4 of the Convention, a "Resident" is defined as a person who is subject to taxation under the law of a particular state due to domicile, residence, citizenship, place of management, or any criterion of similar nature.
How do I calculate the days of my physical presence in Canada?
According to the "183-day-rule" of the Canada Revenue Agency (CRA), the calculation of physical presence in Canada is based on the sum of all days or fractions of days which are spent in Canada within one fiscal year. This includes all days spent at Canadian universities, at work in Canada, and also those days or weekends spent on vacation in Canada. Days or fractions of days spent commuting from a domicile in the US to a workplace in Canada are exempt (Source: CRA).
Relevant Links:
Determination of residence status: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#c
Definition of "Residential Ties": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#b
Definition of "Resident": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#a
Definition of "Deemed Resident": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#a
Taxation Convention between Austria and Canada:
http://www.fin.gc.ca/treaties-conventions/austria_-eng.asp
Definition of "Deemed Non-Resident": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#c
Canada Revenue Agency: http://www.cra-arc.gc.ca/menu-eng.html
"183-day-rule": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#183
In order to determine the tax liability in Canada, residency status must first be clarified. In order to decide whether a person has "Residential Ties" and thus is deemed a "Resident," criteria are considered such as domicile, partner, property such as a car or furniture, or social or business connections in Canada. Moreover, possession of a Canadian driving license or a Canadian bank account, as well as current social security in one of the Canadian provinces or territories, may be considered relevant for the determination of the residency status. Residents have unlimited liability for taxation on their worldwide income. Special regulations apply to persons who do not meet any of the criteria above or similar criteria, and who have, according to the "183-day-rule," spent more than 183 days during the calendar year in Canada. These persons can become "Deemed Residents" and as such have unlimited tax liability, unless they are regarded "Deemed Non-Residents" according to a Taxation Convention with Canada.
How do I determine my residence status?
A person can be deemed "Resident" within one calendar year, if she/he holds Canadian citizenship or she/he is deemed "Resident" due to his/her physical presence in Canada for at least 183 days. According to Article 4 of the Convention, a "Resident" is defined as a person who is subject to taxation under the law of a particular state due to domicile, residence, citizenship, place of management, or any criterion of similar nature.
How do I calculate the days of my physical presence in Canada?
According to the "183-day-rule" of the Canada Revenue Agency (CRA), the calculation of physical presence in Canada is based on the sum of all days or fractions of days which are spent in Canada within one fiscal year. This includes all days spent at Canadian universities, at work in Canada, and also those days or weekends spent on vacation in Canada. Days or fractions of days spent commuting from a domicile in the US to a workplace in Canada are exempt (Source: CRA).
Relevant Links:
Determination of residence status: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#c
Definition of "Residential Ties": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#b
Definition of "Resident": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#a
Definition of "Deemed Resident": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#a
Taxation Convention between Austria and Canada:
http://www.fin.gc.ca/treaties-conventions/austria_-eng.asp
Definition of "Deemed Non-Resident": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html#c
Canada Revenue Agency: http://www.cra-arc.gc.ca/menu-eng.html
"183-day-rule": http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/dmd-eng.html#183
