Does it matter where I receive my money? (Paypal, Non-resident)

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LionMG
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Does it matter where I receive my money? (Paypal, Non-resident)

Post by LionMG »

Hello!

I'm a Canadian moving to Asia and I'll become a non-resident for tax purposes. I create digital content and receive my payments (US dollars) into my Paypal account, which was created while in Canada. I'm wondering if this is a problem and if it matters where I receive my money? Is it seen as Canadian income/touching Canadian soil, or does it only matter where I'm actually doing the work?

As a follow-up, can I send my money from my Paypal account to my Canadian bank account without needing to pay Canadian tax? (to pay bills and to put into my Canadian investment accounts).

Thank you for your help. :o
Davis
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Re: Does it matter where I receive my money? (Paypal, Non-resident)

Post by Davis »

You should make sure you understand CRA's rules on non-residency. If you have a bank account and investment accounts in Canada, you could be deemed a resident for tax purposes.
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kcowan
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Re: Does it matter where I receive my money? (Paypal, Non-resident)

Post by kcowan »

You are making money in Canada so tax is due here. How you get paid is irrelevant. So pay the tax either in Canada or in a country that has a tax treaty with Canada.
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OhGreatGuru
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Re: Does it matter where I receive my money? (Paypal, Non-resident)

Post by OhGreatGuru »

If you re-read it, it is not clear that OP will be making this money in Canada (or from Canadian clients). I think it would depend on where his clients are. If he is serving Canadian clientele though, I would imagine CRA would consider him to be carrying on a continuing business in Canada, for at least that part of his income. He needs to clear this up with CRA.
LionMG
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Re: Does it matter where I receive my money? (Paypal, Non-resident)

Post by LionMG »

Ah yes sorry for not clarifying. My income is not made in Canada from Canadian clients. I sell digital content at several worldwide marketplaces (US based I believe).

For the non-residency, I'm working with an accountant on that now. But I don't have any residential ties in Canada, and I have a wife/long-term rental in my Asian country that I've been staying the past 3 years. From what I've researched, I should be able to keep my bank accounts in Canada as a non-resident.

So back to my original question... does it actually matter where my money earned from my worldwide digital content sales is initially sent to (My Paypal account)?

Thanks.
DmDave
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Re: Does it matter where I receive my money? (Paypal, Non-resident)

Post by DmDave »

I'm no lawyer, but from seeing my friends who declared non-resident and moved overseas to work, they only have to pay income tax to their current country of residence.

Might be a good idea to post your question on reddit Canadian sub, www.reddit.com/r/personalfinancecanada to get more eyeballs.
scorpionman
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Re: Does it matter where I receive my money? (Paypal, Non-resident)

Post by scorpionman »

I think a reasonable grace period to transfer over to another place is fine. I mean, changing residency is a process of time and you can't always just cancel accounts in Canada immediately even though you may be a non-resident earlier. But if you keep them open for a long time, that might be a red flag.
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