If you are working in Canada and are not a resident of Canada, then you too need to pay income tax in Canada. Income that nonresident people living in Canada earn by working in Canada will also be taxed like the taxes that are levied on resident Canadians. The tax structure of course would be different for the two groups.

Living And Working In Canada

If you are living and working in Canada and you are not a Canadian resident, Canadian non-resident taxation rules apply to you. It is ideal that you should be aware of such taxation rules if you are living or working in Canada as a nonresident. You will be able to gather a lot of information about the taxation laws in Canada on nonresidents through the internet and online discussion forums. You can as well contact some of the experienced and reputed tax accounants in the area you live in Canada in order to get full information on the nonresident taxation laws. He or she will help you in computing the tax figures that you need to pay a tax to the Government of Canada.

Accessing Your Canadian Residency Status

A lot of factors are considered when it comes to determining the residence status of a person living in Canada. The important factor that is taken into consideration is the residential ties that the nonresident has in Canada. Some of the common residential ties in Canada are:

• Owning personal property in Canada like car, furniture and so on.

• Having a home in Canada.

• Owning a Canadian driving license or Canadian credit cards or Canadian bank account.

• Having good social or economical ties in the country.

• Have a spouse or dependents in Canada.

• Having a common law partner in Canada.

• Health insurance with Canadian provinces or territories.

If you are not able to find out your residency status then you have the option to fill Form NR74 or NR73 and send it to International Tax Services Offices to get more information and clarity on the status of your residence in Canada.

Forms to File Tax Returns

It is important for you to obtain forms like Canadian T4 form from your Canadian employer in order to file your papers for non-resident tax in Canada. This form will have details of your earnings and deductions that are made by your employer. This form is normally mailed to the address that you give to the Canadian employer. These forms are also quite important for Canada-US tax filing and hence it is important for you to make sure that you give the correct address to your employer so that you receive the form properly. Normally, the T4 forms will be sent by your employer between January and March which will give you ample time to file your nonresident tax return by the end of April.

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