Introduction – The Significance of Tax Residence
Your status as a tax resident determines the extent to which
Canada may tax your income. Canada taxes its residents on their
worldwide income. Canada taxes a non-resident's
Canadian-sourced income. In particular, Canada taxes a
non-resident's income from: (1) employment in Canada; (2)
carrying on a business in Canada; or (3) disposing of a taxable
Canadian property.
Notably, tax residence is unrelated to residence for immigration
purposes. You can be a Canadian tax resident even if you aren't
a Canadian permanent resident or citizen. Similarly, you can be a
Canadian citizen or permanent resident yet fail to be a Canadian
tax resident.
