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If a resident of Canada moves to another country, and
severs residential ties with Canada, he/she is deemed to be
an emigrant of Canada for tax purposes. When this
happens, the person is deemed to have disposed of almost all
their property and re-acquired it at fair market value.
Tax will be payable on any capital gains arising from the
deemed dispositions.
Emigrants are not eligible for:
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Canada Child Tax Benefit (CCTB) |
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Child Disability Benefit (CDB) |
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Universal Child Care Benefit (UCCB) |
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GST/HST credit |
It is important that you report your date of emigration to
Canada Revenue Agency (CRA) as soon as possible.
If you are participating in the Home Buyers' Plan (HBP) or
Lifelong Learning Plan (LLP), you have to pay the balance of the funds you
withdrew by whichever date is earlier:
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60 days after you become a non-resident; or |
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the date you file your tax return for the year. |
If you continue to receive Canadian-source income after you
emigrate, tax of 25% will be withheld from certain types of income. The
most common types of income subject to withholding tax are:
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non-arm's length interest |
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dividends |
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rental payments |
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pension payments |
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Old Age Security (OAS) pension |
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Canada Pension Plan (CPP) or Québec Pension Plan (QPP)
benefits |
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retiring allowances |
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registered retirement savings plan (RRSP) payments |
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registered retirement income fund (RRIF) payments |
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annuity payments |
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