FAQ

My husband works in China and the couple does not live in Toronto. How should I report that a property in Toronto under my husband’s name is rented out?

• It mainly depends on whether the tenant is a tax resident. If so, he or she must file a tax return. If not, the tenant will directly deduct 25% of the rent and pay it to the government.

I sold the stock in 2023, is my cost price calculated as the original purchase price (2023), or the day I was officially called tax resident (2022)?

• The initial purchase price is in 2023, which will be called the initial cost and has nothing to do with being called a tax resident in 2022.

My mother in Hong Kong uses cash transfer to my Hong Kong account (approximately HK$1 million). Is there any limit? If I exceed the limit, do I need to file a tax return?

• Cash gifts are not taxable, but documentation and proof of relationship need to be retained. If funds are transferred from a Hong Kong account to a Canadian account, tax reporting issues will arise.

Do gifts of overseas assets need to be taxed?

• If the donated assets are later sold, the increased value still needs to be reported by filling out T1135.

I have sold my only home in the world. What materials do I need to prepare when reporting to CRA?

• Each family has one owner-occupied residence exempt from VAT. First of all, you need to find out where the owner-occupied house is. When filing a tax return for selling a house, fill in Schedule3 capital gains or losses, fill in Yes in 26600 foreign proprty on the T1 Line, and then fill in the T1135 form. Then you need to fill in the selling price, cost price and other related expenses. Calculate the income for the current year based on 50% of the income. It is not recommended to use a Chinese house as your primary residence. There will be other troubles.

When filing tax returns for overseas income, do I need to provide proof of income from my employer? Do you still need notarization?

• When filing a declaration, it is best to keep the tax payment certificate including the domestic unit income certificate. When the CRA sends a letter requesting proof of overseas salary income, you must provide your personal tax payment record issued by the Chinese Internal Revenue Service. The certificate from the domestic unit is a supporting material. Depending on your personal situation, you can provide information that will help you better prove your income to the CRA. In particular, this may not necessarily be shown on the tax return. All materials need to be translated and certified. The translator must be a certified translation agency or person in Canada, or the translator specified in the CRA letter.

I have returned to China for internship for a period of time and my salary income has not reached the domestic tax threshold. Do I need to fill out T2209?

• If it falls below the threshold, it means there is no domestic tax payment record and it can be declared as overseas income. If the domestic tax paid is less than 200 Canadian dollars, you do not need to fill out T2209.

After I transfer back to a tax resident for non-tax purposes, do I need to provide a tax bill for the non-tax period?

• He only needs to declare his income when he was a tax resident. There is no need to declare his income during the period when he was not a tax resident. But if the CRA may have questions about his "non-tax residents". It will still be checked, and it is best to sort out the proof of income.

How should domestic bank interest income be reported when in Canada?

• For domestic interest, fill in line 12100 interest and other investment income. If it occurs multiple times a year, you can use the annual average exchange rate.

Some Canadian interest rates are less than $50, and I don’t have T5. How should I fill it out?

• Fill in Line12100

Domestic salary income refers to the income after deducting five social insurances and one housing fund?

• Total income before deductions

If the domestic taxable income exceeds 1 million, do I need to pay taxes in Canada?

• Domestic tax income is only proof of tax payment in the country and is different from personal tax filing in Canada. If you are also a Canadian tax resident, you need to declare your worldwide income to the Canada Revenue Agency. The Canadian overseas income tax deduction is CAD 4,000. Whether you need to pay the tax or not depends on the specific situation.

Domestic pensions do not need to be taxed, how to report them?

• For domestic pensions, fill in Line 11500 other pensions and superannuation and need to declare it. If the total income does not exceed the basic personal amount plus age amount, which is approximately CAD 23,000, no tax is payable.

Canadian PR, you need to report your domestic income when filing taxes this year. In 2023, your domestic income will be 7,000 yuan, and the tax amount will be 37 yuan, which has been refunded during the annual remittance. The total personal tax amount is 0, so how much tax should I pay in 2023?

• The tax paid has been refunded, all tax credits are 0, and there is no need to fill out T2209. If your income does not reach the basic personal amount (CAD 15,000), you do not need to pay tax in Canada.

Received CRA pairHow to prepare materials for domestic pension audit?

• Monthly bank receipts, translated into English and notarized. Conversion to Canadian dollars can be settled using the day's or average exchange rate.

If there is annuity income from a Chinese insurance company, is it foreign pension income or foreign income?

• Other Pensioners and Superannuation

Do I need to fill out a separate form when selling an investment property?

• Fill out schedule 3 capital gains or losses. The CRA may also consider it business income. You need to be very careful. What you buy and then rent out is capital gain, and what you buy and then sell or renovate is business income.

I am not in Canada in 2021 and only have a T2202 receipt. Can I file a tax return?

• 0 tax refund, but the credit can be used later, and federal tuition and textbook amounts are reserved for later use.

I am filing a tax return for the first time with a study permit. Do I need to declare my U.S. income? There are rental properties and investment income in the United States.

• There is no need to report overseas assets in the first year. Income still needs to be reported.