Determine your tax residency

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In Canada, determining tax residency is primarily based on the concept of residential ties. Here are the key factors and scenarios to consider:

1.  Significant Residential Ties

   Primary Factors : This includes having a home in Canada, a spouse or common law partner, and dependents residing in Canada. If You Have Significant Residential Ties : You're likely considered a resident for tax purposes.

2.  Secondary Residential Ties 

  These may include personal property in Canada (like a car or furniture), social ties (memberships in Canadian organizations), economic ties (Canadian bank accounts or credit cards), a Canadian driver's license, Canadian health insurance, and employment in Canada.

   If You Have Secondary Ties : Your residency status might depend on the number and importance of these ties in combination.

3.  Deemed Resident

  If you stay in Canada for 183 days or more in a tax year, you’re usually considered a deemed resident for tax purposes. This means you're taxed on your worldwide income.

4.  Non Residents 

   If you don’t have significant or secondary residential ties and spend less than 183 days in Canada, you're generally considered a non resident.

   Non Residents' Tax Obligation : You might need to pay taxes only on income earned from Canadian sources.

5.  Part Year Residents

  If you move to or from Canada during the tax year, you might be considered a part year resident. In this case, you're taxed on worldwide income while you were a resident and only on Canadian sourced income when you were a non resident.

6.  Ties Elsewhere 

  If you have residential ties in another country that Canada has a tax treaty with, these ties might affect your residency status.

It's important to carefully assess your situation, as tax residency determines your responsibility to pay taxes in Canada. If you're unsure about your residency status, consulting with a tax professional or referring to the Canada Revenue Agency (CRA) guidelines is advisable. The CRA also provides a form (NR74 or NR73) that individuals can fill out to get an official determination of their residency status.