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I live in the Caribbean. I remain a Canadian citizen, but a few years ago I declared myself a non-resident for tax purposes. Assuming I have no income in the Caribbean, and I make $100,000 on stocks on the TSE, how much would I owe in taxes?

I know there is a 50% capital gains inclusion rate, so the amount of actual income to be taxed would be $50,000. I have a wife and we would split the gains income between us.

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    Where are you holding these stocks? Are you holding them in a Canadian bank or broker, or in a bank or broker in the Caribbean? Where in the Caribbean are you? – ChrisInEdmonton Aug 26 '13 at 23:56
  • Canadian bank. Cabarete Dominican Republic is here we live/work. We take a min. wage salary here so we have no income tax - hotel provides for us to live. – William Ostermann Aug 27 '13 at 3:01
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Because you are using a Canadian bank, you are deemed to receive the investment income in Canada. You will then have to file your income taxes in Canada and pay capital gains taxes on the $100,000.

Using the SimpleTax calculator, I estimate that you would owe approximately $9,536 in taxes if you owe Alberta provincial taxes; $6,295 in federal taxes, $3,241 in provincial taxes. With $100,000 in investment income, you can estimate this by entering a capital gains of $100,000 (and, unfortunately, an annual income of $1 due to a design flaw in this particular calculator) or an annual income of $50,000 and $0 capital gains. Obviously, this calculator provides an estimate only.

You will want to consult with a professional accountant to determine the specifics of your circumstances. For example, to which province do you owe taxes? Do you also have to report and pay income taxes on this money in the Dominican Republic? Probably not, Canada has a tax treaty with the Dominican Republic.

  • I don't know of any country offhand that charges non-residents capital gains taxes. – brian Apr 30 '14 at 3:46
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Canada doesn't tax non-residents for capital gains except for certain types of property. You will have withholding taxes on dividends. Here's the CRA info for non-residents.

I also doubt you're using a Canadian bank. They're not licensed to sell securities in the Dominican. Most likely your using something like Scotia Bank which has a Canadian parent, but is registered in the Dominican.

It's possible you have investments in a Canadian bank from when you lived in Canada. You should have paid your capital gains taxes before leaving the country on something called a deemed disposition. All you can do with them now is sell them, not buy any more except from a broker registered in your country of residence.

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