Jump to content

Recommended Posts

Hello,

I am new to the forum and I have been trying to figure out, tax wise, if it would be better to have "non-resident" status. Would any of you have experience in this?

Thanks

Share this post


Link to post
Share on other sites

Yes, it may be to your advantage to have non-resident status, but there probably will be a witholding tax of approx. 30%, depending on your income and what property you still have in Canada.

Share this post


Link to post
Share on other sites

Yes, it may be to your advantage to have non-resident status, but there probably will be a witholding tax of approx. 30%, depending on your income and what property you still have in Canada.

My intention would be liquidate everything in Canada and leave the country. My understanding by doing so and possibly only having a PO box left is that I can collapse the RRSP pay 15% Does this sound right? It's very difficult to get definitive answers to this stuff.

Thanks

Share this post


Link to post
Share on other sites

My intention would be liquidate everything in Canada and leave the country. My understanding by doing so and possibly only having a PO box left is that I can collapse the RRSP pay 15% Does this sound right? It's very difficult to get definitive answers to this stuff.

Thanks

 

The 15% isn't right - the institution will withhold a percentage based on the amount withdrawn. The %ages are laddered - the more you withdraw, the higher the tax rate. If you withdraw more than 15k, 30% is withheld. And remember, the collapsed RRSP amounts are considered part of your income for that year - depending on amounts of other income you have, you could end up paying an even higher tax rate. I'm looking into eventually only withdrawing 10-20k/year and paying minimal, if any taxes.

Share this post


Link to post
Share on other sites

The 15% isn't right - the institution will withhold a percentage based on the amount withdrawn. The %ages are laddered - the more you withdraw, the higher the tax rate. If you withdraw more than 15k, 30% is withheld. And remember, the collapsed RRSP amounts are considered part of your income for that year - depending on amounts of other income you have, you could end up paying an even higher tax rate. I'm looking into eventually only withdrawing 10-20k/year and paying minimal, if any taxes.

I think individual cases are different I am waiting for some info from my brokers "specialty" guys in Toronto and if I get anything interesting I'll pass it along.

Thanks for taking the time to reply

Bye for now

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×

Important Information

By using this site, you agree to our Terms of Use.