Canadian Non-Resident Taxes UPDATE: This Changes EVERYTHING!

[@tgts]

This is an excellent topic! Thank you for breaking it down, you do a great job in making this topic easier to understand. Thank you for including your spreadsheets rather than just talking about it. This makes all the information so much easier to follow and digest! Edit: spelling

[@mikaelpoulsen7419]

That’s great news. Because in Panama there is zero tax , the refund from Questrade won’t even have to be reported as income in panama. But I wonder what if a person retired in Portugal (example )keeping investments in Canada in non-registered account you fall under the tax treaty between canada & Portugal that means you share the taxes between the 2 countries because in Portugal you are required to pay tax… long story short if you retiree in a country where you have to pay tax as a resident and are getting a refund from Questrade from ROC & capital gains, that shouldn’t be taxed again next year in Portugal? Any Canadian expats in Portugal having experience with this please comment..

[@ca3812]

Can attest what Adrian said in the video. For split corp, there is no “rebate”; for ETFs like HYLD or EIT.UN, I usually get a rebate every late May. But I am not able to use the numbers on T3 (or NR4 in my case) to ascertain why I received that amount of rebate

[@PassiveIncomeInvesting]

i see my numbers in the T3 i got from Questrade. you see the total credit due back as non resident near the end, but not the breakdown. but i ran the numbers and did a high level approximate and it matched

[@randalxu4889]

Taxes and Death, two things one cannot avoid in life. Thanks for the video which highlighted another great benefit of being a PII, tax efficiency.

[@peterjohnson5586]

Do you pay capital gains tax to the CRA when you sell or trade stocks in your Canadian brokerage as a Canadian tax non-resident?

[@tiredslave]

@@peterjohnson5586 i got the same question but think he just gave the response in the video... in 2021 i made a 175 000 $ as non canadien resident capital gain on usa stocks in a non registred account and still but we filled as resident and i am still figthing with canada...

[@SummitMan165]

Good video. Would be nice to also have a video about taxes vs PII for a Canadian resident.

[@PassiveIncomeInvesting]

have done several already. Taxes even has its own playlist

[@SummitMan165]

@@PassiveIncomeInvesting thanks for reminding me! I’ll have a look because maybe I passed over theses ones !

[@queenieguerra8351]

Thank you!! 🎉! Great information! . What program do you use to record the video ?

[@PassiveIncomeInvesting]

OBS

[@blanksy_-]

What about capital gains / losses as a non resident.. when you sell funds

[@judithvilla6026]

Great topic and awesome news for us Canadians! Love your channel.

[@khan200us]

Great video, full of great authentic information. May I suggest that you add the tax exempt(ROC & Capital Gains) in your Excel sheet or something similiar to ensure that users know that this is either a tax friendly ETF or not. It will at least make a huge impact on my choice of ETF investments. Thanks!

[@PassiveIncomeInvesting]

Can’t , the tax info changes every year for every fund

[@khan200us]

@@PassiveIncomeInvesting Thanks. Hopefully you will keep this info updated in your portfolio at least once a year.

[@MilesBrio]

Thanks for making this video man! This is absolutely amazing news as I am considering becoming a non-resident and digital nomad in the future, cheers!

[@y66llhuaweu98]

Thank you for your lovely content. Question. Interest on Government bonds are not taxed in Canada for non residents. Is the same thing true for corporate bonds? Since both are arms length transactions. I am a non resident of canada with no connections to Canada. I am also not required to file returns in Canada.

[@CoveredCallETFInvesting]

🔥 tax info Adrianno! So cool to see even in your position these funds have amazing tax benefits.

[@bigwildeyes]

Good for you !! Still not clear on the logistics of the whole process. The $$ withheld by Questrade every month get turned over to CRA by Questrade, right ? If you don't have to file documentation to get the $$ back then does it mean Questrade is getting the $$ back from CRA, then to you ? Also, I am assuming the T3's are issued by Questrade with a deadline of end of Feb, 2024 ----- why is the $$ waiting till May ? Sounds like the figures are triggered by the ROC/capital gain breakdown issued by the funds --- when did that come out ?

[@blanksy_-]

Good question.. I'm in same boat

[@corradoQC]

T3 can get release up to 90days after the fiscal year end, the time to do the accounting and everything else is probably the reason why it takes till May to get the refund.

[@PassiveIncomeInvesting]

T3 deadline is March, not Feb. The Broker keeps the 25% by default because the breakdown is not known UNTIL March. then once its known, the broker reimburses ROC and Capital Gains and gives the rest to the CRA (i assume)

[@davdride4850]

Glad for all updates. About taxes. Have to learn this befor I start living off. My pay outs. Thanks again Adriano for these update a

[@dkyrtata6688]

When you sell a fund with a capital gain, there is no tax owing? (since you do not have to fill out a tax return)

[@blanksy_-]

I wonder this for future trades too. .

[@PassiveIncomeInvesting]

nope

[@Papineau7614]

Very well explained ! Thanks !

[@kellyinPH]

Didn’t you get money back last May? And are you saying a refund from QT or CRA? There are a couple extra forms to file to try and get money back

[@PassiveIncomeInvesting]

no, 2023 is my first full year as non resident . refund should be from QT

[@kellyinPH]

@@PassiveIncomeInvestingi was under the impression my 25% went straight to CRA first

[@corradoQC]

​@@kellyinPH What do you mean straight to the CRA? Your 25% is withheld by the bank/brokerage. They send that portion to the CRA if the income was from dividends or interest. If the income if from capital they should not tax you on it, hence why he gets a rebate.

[@kellyinPH]

@@corradoQCgood to know thanks. But for registered acct the broker would just give the entire 25% to CRA? 2025 will be my first full year as a non resident so just preparing tax crap 😮

[@corradoQC]

@@kellyinPH If you want to make sure call them. Also ask if you'll be able to keep you account has a non resident. The current government is preparing to charge us more with the exit tax by implementing changes to the AMT, so stay up to date on that.

[@fbawab]

Thanks Adrian. Will this refund process work only for Canadian broker accounts that allow non-resident accounts (e.g., Questtade)? Will it work if you have accounts with a US-based broker (e.g., IBKR)? Does anybody in the group know based on previous years?

[@PassiveIncomeInvesting]

it should. the broker itself should not matter they all need to follow the same rules

[@fbawab]

@@PassiveIncomeInvesting Got your withheld taxes back? Did anyone get it?

[@TheSarto1965]

Question: What could be the main benefits to moving from Quebec to Ontario just 1 year before leaving Canada? Thanks for your great videos

[@vsecured]

Do you know if we need to fill in a refund form as well for these ETFs held within Interactive Brokers??

[@blanksy_-]

Not done the departure tax yet.. but how do you pay more capital gains in the future on something you theoretically sold ?

[@PassiveIncomeInvesting]

you dont. its as if you SOLD IT ALL once you do the departure tax

[@blanksy_-]

@@PassiveIncomeInvesting that's great.. WOW

[@matthewbell9683]

Great information. Always things to learn.

[@SHHHMotoTravels]

This is such a good update. Good to know.

[@maryline9946]

Wonderful news Adriano! Thanks for the update! Do you know if we can claim the same for US covered call ETF 30% witholding tax? (For non residents)

[@PassiveIncomeInvesting]

don;t think so

[@blanksy_-]

Only 15% when you complete a form

[@MrEdsam]

In 2023, 100% of distribution from USCC, QQCC and HTA were classified as RoC. No tax on RoC.

[@PassiveIncomeInvesting]

yup!

[@danjennings4700]

This "news" is a good example of why income taxes are too complex to listen to free KZbinr "advice".

[@corradoQC]

It's so complex the often CRA and Accountants don't even know themselves it's completely ridiculous. What Adrian explained here is not really complex, it's just a confirmation of what actually happens.

[@dkyrtata6688]

@@corradoQC And if I may add, I am not convinced that he won't get back the ROC from his real estate fund (RS) until he sees it (or not sees it) with his own eyes.

[@PassiveIncomeInvesting]

apparently , only "ROC" is the issue, not capital gains. and you can file to get the ROC back after you sell. So complicated! i assume owning "physical" real estate as a non resident is also a nightmare. why bother!

[@anomanderrake8693]

so if i get it, there is no tax whatsoever at the personal level in Panama?

[@PassiveIncomeInvesting]

on foreign income . if you make income inside Panama like you own a business or work here, of course there is tax

[@rickbold9337]

Great info Adrian. I will be leaving Canada this year. I have a TD investment account. Do I have to let them know about this or will they automatically do as quest trade did for you? Maybe I should move to quest trade?

[@PassiveIncomeInvesting]

i had to leave TD because they did not allow me to keep my accounts so i switched. make sure to use my Questrade refferal code for a free $50 :)

[@shakksaikia7643]

@@PassiveIncomeInvestingthat’s good to know coz I am using TD as well but was looking into ibkr and questrade

[@danawc5595]

Being a non-resident do you have to do taxes every year (file in Canada)? I thought non-residents didn’t have to? Wow

[@PassiveIncomeInvesting]

no, you dont

[@gagarwal]

Hi Adrian, quite helpful this. Also, can you please do a quick video podcast on which brokers support non resident accounts? Wealthsimple does not.

[@kellyinPH]

@gagarwal although not my fav broker, but i had to switch to QT for non-resident support

[@gagarwal]

@@kellyinPH was looking for an alternative to pay 4.95 minimum for each stock trade. I am a daily $50 purchaser of etfs…. That will kill my strategy

[@MayconRosa-dl9ry]

Really nice video, thanks for the info. I have question, are you still sending money from Panama to Canada to keep investing here?

[@PassiveIncomeInvesting]

nothing has really changed for me. still have a Canadian bank account

[@MayconRosa-dl9ry]

@@PassiveIncomeInvesting I'm planning to move soon, did u get help from some company or you did everything by yourself?

[@shakksaikia7643]

Thank you for the video. I Will be moving to New Zealand next year. Currently I have TD which will have to close. Do you think I should move all my money to QT and invest on etf’s and leave it there ? I Will be glad if you can give me your opinion.

[@PassiveIncomeInvesting]

call TD and see what they. then you'll know what to do lol

[@Barlovento2005]

I feel the jubilation in your voice😂 but you kept it together. Can’t wait to see what you do with RS and FTN

[@molten_ice]

In case you didn't know US lets you get back all capital gains and ROC as well. You should get a 1042-S describing this from your broker. Only thing with the US is that you need to fill in a form to get that money back instead of automatically through your broker.

[@maryline9946]

Priceless information! So the capital gain and ROC amounts will come in the 1042-S form from your broker, right? and then we send to the US IRS? How does it work exactly? Thanks for helping us!

[@molten_ice]

@@maryline9946 Glad I could help! I think what you said is basically how it works. For exact details just google how to do this, this is what I am doing too. If you have an accountant you can ask them as well.

[@Jackiedu62]

Very good video as I'm considering moving back to New Zealand.

[@PassiveIncomeInvesting]

remember that you might need to pay foreign income there. its rare countries have 0 % foreign income tax

[@MrAntonioDP]

​@PassiveIncomeInvesting what other counties have you found with no foreign income tax?

[@shakksaikia7643]

Same here ! I am researching on how to keep my investments on while moving there . I have to close my TD for sure but do I move it all to QT or IBKR 🤔 is it worthit

[@thanhomerae]

oh my god... it's too complicated

[@tonyglen33]

Wow, that's breaking news!

[@hanchen4110]

Took me a while to understand what ROC (return of capital) is, yahoo

[@jasonstupak4535]

So RS is going to become "aninimous" in your portfolio soon? Sorry, couldn't resist! All the best Adriano!

[@PassiveIncomeInvesting]

unfortunately, but no rush

[@fraganos]

I guess you need an canadian brokerage for this?

[@blanksy_-]

Us funds in non reg ?.. foreign income I guess

[@PassiveIncomeInvesting]

yup, for the most part . also no refunds

[@corradoQC]

Great information Adrian thanks ! Can't wait to get out :D

[@blanksy_-]

Wow you can imagine the refund I am going to get. 😅

[@TheProjectOverload]

Wow your tax rate went from 25% to about 6.25% - Amazing 🎉

[@PassiveIncomeInvesting]

it will go lower still!