Residency Determination:  Non-resident, deemed-resident, dual resident, or deemed non-resident?

A taxpayer can be a resident of one country for immigration purposes and a resident of a different country for tax purposes. To determine whether someone is a tax resident in Canada, several residential ties are considered. Individual factors are not determinative as these factors are weighed together to arrive at a conclusion.

Primary factors which have more weight in the determination of an individual’s residence are:

  • Home in Canada
  • Spouse/common-law partner in Canada
  • Dependents (children) in Canada

Secondary factors are:

  • Owning a Canadian driver’s license
  • Maintaining a Canadian passport
  • Canadian Bank account
  • Social ties to Canada

Canada taxes all Canadian residents on the worldwide income, meaning non-residents are taxed solely on their Canadian-source income. Taxpayers may file form NR73 Determination of Residency Status to confirm with the CRA to know whether they qualify as a tax resident or non-resident of Canada.

To learn more about the tax implications and obligation of these types of residencies, please see the government publication indicated below or consult our tax professional to address your specific situation.

Non resident of Canada

Deemed residents of Canada

Treaty consideration

This article is intended for general information purposes only and does not constitute professional advice.  Income tax law and regulation change frequently and the content on this article may no longer reflect the current state of the law. If you have any specific questions, you should consult a professional services advisor or email us for further advice.