{"id":6599,"date":"2021-04-23T07:03:00","date_gmt":"2021-04-23T11:03:00","guid":{"rendered":"https:\/\/www.effisca.com\/?p=6599"},"modified":"2021-11-08T15:34:41","modified_gmt":"2021-11-08T20:34:41","slug":"immigrate-to-canada-knowing-tax-implications-prior-arrival","status":"publish","type":"post","link":"https:\/\/www.effisca.com\/en\/immigrate-to-canada-knowing-tax-implications-prior-arrival\/","title":{"rendered":"Immigrate to Canada: knowing tax implications prior arrival"},"content":{"rendered":"\n

You’ve made your decision, and you and your family have decided to immigrate to Canada. Before landing on Canadian soil, you need to know the different tax implications of immigrating to Canada. We have drawn up some essential elements for you to consider.<\/p>\n\n\n\n

Upon arrival in Canada, under the Income Tax Act, you will be deemed to have sold all of your property (with exceptions) immediately prior to your immigration to Canada. At the same time, you will be presumed to have acquired these same assets again, so the book cost (adjusted cost base) will be equal to the fair market value. The logic behind this tax rule is simple: Canada will only tax the capital gain generated on your affected property during your period of Canadian tax residency<\/a>.<\/p>\n\n\n\n

Portrait of your belongings before your arrival<\/strong><\/h2>\n\n\n\n

It will therefore be important to make a list of all your possessions immediately before your immigration to Canada since this will serve as the basis for calculating the capital gain on the actual disposition. In addition, you will need to file a Canadian income tax return and notify the tax authorities of your immigration to Canada.<\/p>\n\n\n\n

As a Canadian tax resident<\/strong><\/h2>\n\n\n\n

Upon arrival as a Canadian tax resident<\/a>, your worldwide source income will be subject to Canadian tax. Before that date, only your Canadian-source income will be subject to tax in Canada.<\/p>\n\n\n\n

The CRA also provides you with Form NR-74 Determination of Residency Status (Entering Canada)<\/a> in order to obtain an opinion on your tax residency status. This form can therefore be used as a guideline, but should not be transmitted since the determination of the status is very complex and many gray areas exist. By submitting it, you are sort of asking the CRA to decide for you.<\/p>\n\n\n\n

Property not covered by the deemed disposition<\/strong><\/h2>\n\n\n\n

Although most property is covered by the deemed disposition, certain exceptions exist, namely:<\/p>\n\n\n\n