If you are a Canadian planning to work abroad, you need to find
out whether your residency will change, because if it does, it may
affect your Canadian tax burden. Will you remain a Canadian
resident during the period of your assignment or will you break
Canadian residency? When you cease to be a Canadian resident, you
normally aren't subject to Canadian tax anymore. However, if
you remain a Canadian resident during your assignment, you still
have to file a Canadian tax return and will be subject to taxation
on your worldwide income.
Here are some of the key issues to keep in mind when making
plans to work outside Canada.
To file or not to file
If you remain a Canadian resident, it's simple; you still
have to file a Canadian tax return reporting your worldwide income.
If you can successfully show that you ceased to be a Canadian
resident, you would file a final tax return in the year of
departure and thereafter you would no longer have to file a
Canadian tax
