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I am a Canadian Citizen, who lived and worked in Switzerland for a full year. During that time, my only source of income was the company I was working for there. Swiss government deducted a particular percentage of my income as tax. Let's say that deduction was %x of my net salary. So, how much that deducted amount should be so that Canadian revenue agency does not deduct anything from my money once I declare my foreign income?

Thanks

(I just tried to check the CRA webpage, but I could not infer the answer to my question.)

Edit: Here are the answers to the comment's questions.

When did you arrive and when did you leave?

I just lived in Switzerland there during 2020.

Did you always intend to return to Canada so quickly?

Not necessarily!

Did you make attempts to fully cut ties with Canada, like by selling a house etc.?

Yes.

Are you sure Switzerland considered you a resident for tax purposes?

Yes. I have tax deductions cited in my salary certificate issued by the Swiss body.

Whether Canada considered you a resident for tax purposes could change based on all of this. If you weren't a resident for tax purposes [not always an easy thing to know for certain depending on circumstances] you might not need to file a tax return in Canada at all for those years.

Do the answers to the questions above bring any conclusion?

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  • You say you 'lived and worked in Switzerland' for a 'full year'. When did you arrive and when did you leave? Did you always intend to return to Canada so quickly? Did you make attempts to fully cut ties with Canada, like by selling a house etc.? Are you sure Switzerland considered you a resident for tax purposes? Whether Canada considered you a resident for tax purposes could change based on all of this. If you weren't a resident for tax purposes [not always an easy thing to know for certain depending on circumstances] you might not need to file a tax return in Canada at all for those years. Oct 12, 2021 at 16:58
  • @Grade'Eh'Bacon: Please check the applied edit which includes the answers to your questions.
    – User
    Oct 12, 2021 at 19:20
  • Unfortunately, the vagueness of your situation makes answering this quite difficult without expert analysis of the facts in your case - highly recommend you seek professional help. Oct 13, 2021 at 15:09

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Canada has a bilateral tax treaty with Switzerland. There are a lot of details, but the gist of it is in this quote from Article 22:

tax payable in Switzerland on profits, income or gains arising in Switzerland shall be deducted from any Canadian tax payable in respect of such profits, income or gains

When you prepare your tax return, you will indicate the total income received in Switzerland; it will be used to calculate your total tax according to the Canadian laws, then you will deduct from that amount the amount of taxes paid in Switzerland. Whatever's left will be payable to the Canadian government.

I suspect taxes in Switzerland are actually higher than in Canada, so I think you won't owe anything to the Canadian government.

If you are uncomfortable preparing your tax return given these complexities, I suggest you find a tax professional familiar with double taxation issues.

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