if a person were to be a non-resident of Canada without jobs, a spouse, kids, asset (houses, cars etc.) in Canada, then that person would not be obliged to file a tax report. However, if that person were to have an investment account (for example, investerline of BMO) and made earnings in the stock market, would that person need to pay taxes for those earnings?

Thank you!

  • There is a different between 'not resident' in the sense of not having Permanent Resident immigration status and "not resident for tax purposes". You can be resident for tax purposes without being a PR, and in that case you are subject to taxes. Nov 15 '14 at 19:03

Yes, that person would be obligated to pay taxes on earnings from investments. This is not all that unusual; a number of Canadians retire to Florida or some other warm climate, but their retirement funds are in Canadian bank accounts.

In some cases, you may not actually have to pay tax. You pay 15% federal tax on the first $43,561 of taxable income, but get a basic personal amount of $10,822 as an exemption.

Note that you may be obligated to pay tax on this investment income in your country of residence as well. Some countries (e.g. the U.S.A.) have tax treaties with Canada to prevent double taxation.

  • thanks chris :) if the investments were only made through a canadian account but was on stocks in a non-canadian market, does this still apply?
    – silverloc
    May 13 '13 at 16:05
  • Yes, it would still apply (to the best of my knowledge; I'm not an accountant). Your investment account is in Canada so any benefit of that account will be taxed in Canada. May 14 '13 at 11:51

You are not taxed in Canada if the shares are held in a publicly traded company such as CIBC, TD , or other large corporate. Dividends are subject to a Non Resident withholding tax in accordance with CRA rules. May be taxed again in your country of residence depending upon any Tax Treaty. Capital gains tax will come under the tax jurisdiction of the country of residence.

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