# Complicated tax situation



## bnhd (Nov 19, 2013)

I'm reaching out to a few international tax lawyers that I've found online, looking for professional help... I was hoping that I might get some useful information from you guys as well!


So here's the situation:

I'm an Android developer. I work from home creating games, that are then sold globally through Google and Amazon. The bulk of my sales are generated in the US, then I am paid my percentage directly from the distributing company. Currently I've declared as self-employed personal income and filed solely within Canada. I have an American ETIN and filed a W-8BEN with Amazon to avoid US tax withholding. 

My wife and I are looking at moving somewhere warmer and cheaper, like Mexico or Belize. I'm trying to figure out how the taxation will work when I'm no longer a resident of Canada. We want to do a full emigration and apply for permanent residency. 


The confusion:

It looks like in Mexico I'd pay Mexican taxes on the foreign income, but apparently Belize only taxes income generated within Belize. I'm not sure if I'll be required to pay taxes in Canada, the US, the target country..?


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## maesonna (Jun 10, 2008)

In Canada, you are no longer liable for Canadian taxes if you are deemed a non-resident of Canada. You are considered to be a “deemed non-resident” if you fulfill certain criteria such as not residing in Canada for too long during a year, having permanent residence in another country, and not having residential ties (such as a house or a spouse) in Canada, among other things. Start here for an overview and links to more detailed information.


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## bnhd (Nov 19, 2013)

I don't see a problem with us being deemed non-residents. We'd live there for most of the year, have a residence there etc, and not have residential ties in Canada other than "social ties".

I'm not really expecting to have any tax obligations in Canada if we are residents of Mexico and our primary income is coming from the US. I'm mostly concerned towards which of those would I be paying taxes to. Or if Belize, would I be paying taxes at all?

If Mexico, would I be able to pay my taxes in the US (at a lower rate) and then apply the credits to not pay taxes on that income in Mexico? Actually... is that something I should already have done while living in Canada?

If Belize, would I not pay the IRS because of foreign tax exemption, and then also not pay Belize because of foreign income?

>.<


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