# Being Taxed in Two Countries



## Janus (Oct 23, 2013)

This is a bit of a stretch, but I'm curious to see if there are any international tax experts on CMF... *crosses fingers*

I moved to Hong Kong this September, and have been a resident since moving here. My interpretation of the CRA website is that since I was working in Canada for more than half the tax year of 2013, I will have to pay taxes like any other Canadian on ALL my international income, i.e. including my Hong Kong salary from September to December 31st. 

First of all, is this the case? Will I be taxed like a Canadian this year?

Secondly, Hong Kong will also be taxing me on that income. *I'll be taxed on the same income by 2 different authorities*... isn't there something in international tax law (treaties, for example) preventing this from happening?

Thanks,

Janus


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## AltaRed (Jun 8, 2009)

There are tax treaties between most countries to help prevent that. Unless you want to spend an inordinate amount of time trying to understand how to navigate through all this, hire yourself a good cross-border tax accountant that specializes in helping people like you. It can be very tricky. Also, just because you moved to Hong Kong and now reside there, that does not mean you are now a tax resident of Hong Kong (and not of Canada). It depends on what 'ties' you may retain in Canada.


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## Just a Guy (Mar 27, 2012)

Usually what happens is you file in both countries but get credit for the time in each so you only pay one time. But again, get an accountant to help you out.


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## Guban (Jul 5, 2011)

Generally, an emigrant just files one final tax return, and indicates that he/she is severing residential ties to Canada. See:
http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html
The only problem in your case, however, I don't believe that Canada has a ratified treaty with Hong Kong. I seem to recall hearing something about an agreement, but I'm not sure if it has been ratified.


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## Charlie (May 20, 2011)

If you sojourn in Canada more then six months -- drifting in and out -- then you're taxable for the full year.

If you left -- moved and packed up with expectations of being gone more then 2 yrs, then you're only resident until you left. So you'll file a Canadian return for the period you were here. Here's CRA's link: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html

EDIT -- I'm slow on the draw. Post above summed it up. Don't think treaties matter unless you haven't severed Cdn ties (and posting on CMF shouldn't taint that ).


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## Guban (Jul 5, 2011)

Just googled, and found this:
http://www.mcmillan.ca/Hong-Kong-Canada-tax-treaty-in-force
Says that the tax treaty is only applicable after Jan 2014, so you may have to use foreign tax credits to avoid double taxation. (Just the usual heavy income tax that we as Canadians get! :chuncky


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