Dedicated to providing you with credible information about living overseas
Best Places In The World To Retire Community Questions and Answers about living and retiring abroad

Questions & Answers

Q & A Menu Q & A BY TOPIC
To navigate, use menu bar to the left
Denise Patrick of Panama Roadrunner Secure Transport – Best Places In The World To Retire User Account
Map of Canada – Best Places In The World To Retire – International LivingIf you live in Panama, the answer to if you still have to file your income taxes in Canada is “No and yes.” If you are no longer a resident of Canada, you do not have to file income taxes. If you are still a resident of Canada and you have income in Canada or in Panama, you do have to file. So it depends on what country you are a resident of or what status you have in Canada. So, if you still own a home in Canada or if you have significant holdings and investments, that will tie you to Canada, and then you would have to file income taxes.
 
If you spent 6 months in Canada and 6 months here in Panama, you are definitely going to be filing in Canada. But if you give up your Canadian investments and holdings, and you live full time down here in Panama, then no, you would not be liable for income taxes in Canada. 
 
Neil and I both file returns for 2012.  As partners, our 2012 returns were identical.  We had filed the CRA paperwork to give up our residency.  Revenue Canada refunded me and made Neil pay a very hefty tax bill (on identical income).  We had an international tax accountant file the paperwork requesting a review, but the tax accountant was going to end up costing more than the tax bill.  Two full years later we got a phone call, here in Panama, from a lady from CRA asking if we would like a refund!  Canada does not consider income in Panama as taxable in Canada if you are a non resident.
 
(Map of Canada, pictured. )
Al Mulaire of Planet Telecom Panama – Best Places In The World To Retire User Account
Whether or not you still have to file income taxes for Canada if you live in Panama depends. I am not a tax lawyer, but my sources tell me (a university tax law professor) that you not only need to advise the CRA of your "non-resident" status, you also need to cut your ties to Canada.  For example, CRA will look at several factors to see if you really are a defacto "resident"; factors like owning a home in Canada, having a business or bank account in Canada, even a Canadian drivers license...could tip the balance in the direction of CRA designating you as a "deemed resident" - and taxing you accordingly.
 
Tabitha Paddock of Greenback Expat Tax Services – Best Places In The World To Retire User Account
Canada taxes its residents on their worldwide income every year, and as long as you are still considered a resident, then you must continue to file a Canadian tax return. **Note you may still be considered a resident even if you are no longer physically residing in Canada. This is based on a number of factors, many of which involve the number of ties you still have in Canada after your move.
 
In order to remove your "residency" (this is not the same as renouncing your citizenship, just removes your obligation to file in Canada every year), you must file a final "departure tax return" before you go. 
 
If you are no longer considered a resident for tax purposes in Canada, then you will not have to file a Canadian tax return.

Go Here Next

 
Best Places In The World To Retire Expat Stories contains text, video, and photos by people just like you who are already living abroadUse the menu on this page to go to categories of Stories.
Best Places In The World To Retire Community Questions and Answers about living and retiring abroadUse the menu on this page to go to other categories of questions.
The Best Places In The World To Retire Location Advisor makes personalized recommendations for where to live and retire overseasGet matched to your ideal location to live abroad.
Best Places In The World To Retire Community Questions and Answers about living and retiring abroadAnswers about living, working or visiting abroad.
Best Places In The World To Retire Expat Stories contains text, video, and photos by people just like you who are already living abroadStories by expats & others about their life aborad.
Best Places In The World To Retire - MarketplaceFind for profit, non-profit and religious organizations.
 

Our Pledge To You

Best Places will present information from the Community in a transparent way, unedited, except to conform with our Conditions of Use.

You can trust that Best Places does not manipulate content to sell you anything. All opinions in the Community Q & A and Expat Stories are those of its authors, not Best Places.

Get Known To The Community

Those who contribute to the Best Places Community are our heroes! And being a Best Places hero is fast, fun, and easy. Just go to Questions & Answers, find your first question to answer, click on it, and then click the Contribute Your Answer To This Question Button. If you’d rather enter a Story, go to Expat Stories and click the Contribute Your Story Button".

Contact/Support

Please contact us. We would love to hear from you! Customer Service
Technical Support
Business Development
Suggestions
Press
Phone: (US) 520-940-0481