How to calculate the tax for Canadian immigrants to buy a house?

When you immigrate to Canada to buy a house, the taxpayer is responsible for the calculation and declaration. Of course, the calculation can be entrusted to an accountant, but providing comprehensive and accurate information is the premise of successful tax return. Let's talk about how to calculate tax when buying a house in Canada.

Here, I would like to briefly introduce some knowledge of individual income tax in Canada, hoping to help new immigrants in China understand the tax system in Canada and make a good family tax plan.

Object of personal income tax

The main target of individual income tax in Canada is "taxpayers", and all income in the world must be taxed in Canada. Its definition mainly considers the following factors:

1, daily residence;

2. Residence relationship with Canada or other places;

3. Length of stay in Canada.

"Taxable residents" include people who live in other places but have a residential relationship with Canada. In addition, people who have no "residence relationship" with Canada but have lived in Canada for 183 days or more within one year will also be regarded as "tax residents" and should file tax returns in Canada.

"Tax residents" and "non-tax residents" are issues that new immigrants are more concerned about. Some people think that as long as you leave Canada and never come back, you will automatically become a non-tax resident, and you no longer need to declare your income and pay taxes to Canada. Some people think that as long as they don't work in Canada and enjoy Canadian benefits, they are tax-free residents and don't have to pay taxes. But immigration lawyers point out that this is a one-sided understanding of non-tax residents. Non-tax residents refer to special residents who have moved out of Canada and completely severed their residence relationship with Canada, and their global income does not need to be declared in Canada; Non-tax residents can apply from the day they leave the country or sever their residence relationship with Canada.

However, in general, it is not easy for non-tax residents to apply. Only those who have left Canada for more than two years can become qualified non-tax residents. If you are married or have children under the age of 18, you must leave the country as a whole to qualify. The difference between tax residents and non-tax residents lies in whether the global income of the parties concerned needs to be declared and taxed in Canada. Anyone who lives in or has a relationship with Canada must declare his personal global income. If he has paid local personal income tax overseas, the tax can be deducted from the tax payable in Canada. However, because the personal income tax rate in Canada is higher than that in many countries, it is likely that the remaining taxes will be paid in Canada, and non-tax residents do not need to declare and pay overseas income tax.