# Tax for dual PR - Canada and Australia



## alibaba90 (Dec 4, 2017)

I am holding Australia and Canadian PR. I stayed in Canada to study for 1 year and intern for 6 months. Now I got a job in Australia and soon I will be moving there. Will I be subject to double taxation from Canada and Australia ? How to avoid double paying taxes ? 

Many thanks


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## Bevdeforges (Nov 16, 2007)

I think there is some sort of a "declaration" you have to make to the Canadian tax people to notify them that you will be resident elsewhere - and to be relieved of your tax obligation. Having a job in Australia will certainly subject you to their tax system. 
Cheers,
Bev


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## Nononymous (Jul 12, 2011)

Yes, you would declare non-residency as far as Canada is concerned, then have no further obligations for Canadian taxes. You can find details of how to do this on the CRA site. I have no idea how doing so might impact your PR status - you should look into this as well.


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## Moulard (Feb 3, 2017)

Here is the convention on dual taxation between Australia and Canada

https://www.fin.gc.ca/treaties-conventions/austral2-eng.asp

If you are considered a tax resident of Australia then you will be taxed on your worldwide income by the ATO. However you will be able get a foreign tax offset for any Canadian taxes paid.

Unless you continue to recieve Canadian income, this is likely to only come into play for your initial tax returns. Remember Australian and Canadian fiscal years are different (the Australian Fiscal year is July to June)

This page will give you a quick overview of Australian Taxes
https://www.ato.gov.au/individuals/...to-australia/moving-to-australia-permanently/


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## jbr439 (Nov 17, 2013)

Nononymous said:


> Yes, you would declare non-residency as far as Canada is concerned, then have no further obligations for Canadian taxes. You can find details of how to do this on the CRA site. I have no idea how doing so might impact your PR status - you should look into this as well.


Note that becoming a non-tax resident of Canada results in a deemed disposition of assets, potentially resulting in tax owed on capital gains. This is Canada's "departure tax", on which the US' "exit tax" was apparently based. 

See: https://www.canada.ca/en/revenue-ag...a-non-residents/leaving-canada-emigrants.html


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## Nononymous (Jul 12, 2011)

Yes, depending on the situation it may or may not be a good idea to declare Canadian non-residency. 

But hey, at least it's an option without renouncing citizenship, unlike the ****head system US citizens have to put up with!

If the OP had only been in Canada for a year or two and didn't have much in the way of assets, non-residency would likely be very simple and absolutely worth doing. But I have no idea what effect that would have on the immigration status, so worth looking into that first.


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## jbr439 (Nov 17, 2013)

Nononymous said:


> ...
> But hey, at least it's an option without renouncing citizenship, unlike the ****head system US citizens have to put up with!
> ...


Preaching to the choir


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## JustLurking (Mar 25, 2015)

jbr439 said:


> This is Canada's "departure tax", on which the US' "exit tax" was apparently based.


The key difference, of course, being that Canada's 'departure tax' is reasonable, coherent and sensible, whereas the US's 'exit tax' is draconian, overbearing and economically self-destructive.

Two cases in point. The US taxes a 'deemed' distribution of _all_ retirement savings plans as if received _in entirety_ the day before renouncing, so expect 35% or more lost to tax there. And then further, it taxes the US person or US citizen _recipients_ of any later gifts and bequests from covered expatriates, at estate tax rates of up to 40%. Utterly bonkers.


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## Bevdeforges (Nov 16, 2007)

While I'm all for US bashing, the US exit tax has no relevance to this discussion here. Under what circumstances would our OP be subject to the CANADIAN exit tax?
Cheers,
Bev


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## Nononymous (Jul 12, 2011)

Bevdeforges said:


> While I'm all for US bashing, the US exit tax has no relevance to this discussion here. Under what circumstances would our OP be subject to the CANADIAN exit tax?
> Cheers,
> Bev


Only if they voluntarily applied to become non-resident, which may or may not make sense for them, depending on circumstances.

As for what circumstances would lead them to owing anything for the exit tax, I'll leave that as an exercise. Capital gains on investments outside of retirement savings, basically.


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