Sikan

I am a new immigrant will probably land in Vancouver in December or January. My wife
and daughter will keep staying while I will come back to China since I have got a job
with good pay.I think this is so called "spacemen".

I have done some reasearch about the tax systerm in Canada but still like to have some
inputs from experts here.

Backgroud:

My annual salary in China is a bit more than CND80K. My wife does not work. My daugter
will be 3 year old by the time of landing. Because my wife and daugter will stay in
Canada, I will be a "factual resident" which means I should file a tax return for my
global income.

Questions:

1)from the tax planning point of view, shall I land in 2003 or 2004. I understand that
only the revenue between the landing to the y/e to be assessed. However, the first year
tax return do not required to report the asset I hold back in China. Apart from that,
any difference?

2)Is it still possible to get those tax benefits like GST/HST credit, CCTB with my
income level? I know even if I under report my salary in China, the chance to be found
by the tax inspect is low. But let's first think about the leagl way.

3)There must be a double tax treaty between China and Canada. What if the tax assessed
under Canada tax law higher or lower than what I have paid in China?

4)Shall I obtain any document to prove I have paid taxes in China?

Sweety

Hi Sikan,
Your question is quite detailed. Speaking frankly, if some tax people want to answer your question like this, they would definitely charge you some money.
I am not an expert, however, based on my tax knowledge, I would like to lend you some help.
You are right, you are deemed tax resident because your family tie is in Canada. Your income from China, including your employment income, rental income and other income would be taxed in Canada under Canadian Tax Law. Because there is no tax treaty between Canada and China, you may have some difficulty when you want to prove you have paid your income tax in China.
However, it does not mean it is not possible. You can obtain official tax recepit from Chinese Tax Authority if you push your company's account to do that for you. But you have to give your company a good reason, because they would not like to take that trouble.
For the Chinese Tax Authority, they are also reluctant to issue the tax receipt for you if you want to apply it by yourself.
If you can obtain this tax receipt from China, then you can get foreign tax credit from Canada for the tax you have been paid in China. However, this is detailed calculation to know how much you have to pay more in Canada because Chinese income tax rate is lower than Canada.
But as you said, your income is about 80KRMB, about CA$13K. I do not know the tax rate in BC, but as my knowledge in Quebec, your rate is in the lowest range, about 22%. But you have wife without job and a daughter, even you claim the true income, you do not need to pay tax in Canada as my estimate.
My result may not accurate, it is better for your wife to consult some professional in Vancouver. But I am glad to know people also can find good life in China.
Good luck then.

Sikan

Sweety, Thank you for reply. I understand that the professional advice is not free because I am a so called "professional" myself.

The problem is my income in China is not RMB80K but RMB 500K (equiv. Canadian Dollar 80K).It should be in the higher tax rate bucket in Canada.

I think I have now find the solution. My wife, my daughter and I should go back to China shortly after the landing to avoid the family tie. We then should stay in China for another 3 years. I will then quit from my job and move to Canada to meet the 2-years-in-5 requirement. By that time, My daughter will be 6 years old and it is the time for school.

Suppose I can not find a job in the first year in Canada and I will entile to all the tax benefits.

BTW. What area so you work in? Sounds like accounting or investment.

Sweety

Hi Sikan, it is nice to hear your wise decision. Please also check your hotmail box, because I sent you an email for further suggestion.

China1618

you should ask canadian consuler to explain the 2 in 5 year rule, maybe it work differently from what you thinking. beside, I know there are treaty between china and canadian(very old) but unfortunately I do not know the detail