NON RESIDENCE

Forum|Forum|4 years ago
March 10, 2022
1 reply
4 views

Country of Residence on December 31. Seasonal worker from Guatemala. If he is in Canada at December 31 do I put Canada or do I put where he actually lives, Guatemala? I cannot find a solid answer anywhere.

ProFile (Canada)

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J

janisbossenberry

Level 7

It will depend upon how many days he as been here during the year. If more than 183, he will likely be a deemed resident of Canada and you will call him a deemed resident on the INFO screen, putting Canada as country of residence on December 31st. If less than 183 days, he would normally be considered a non-resident and you would put Guatamala. He would file a tax return in Canada as a non-resident.

T

tpeskyAuthor

Level 3

I have always put Guatemalan and no one has every said anything. BUT, deemed residents are supposed to collect GST but CRA says they have to be here a month before and during GST payouts. How do they know when my guys are here? None of them are collecting GST. Have you been successful with GST? Is that maybe why they aren't collecting, because I'm putting Guatemala instead of Canada as their country of residence as at December 31st? Even if they aren't physically in Canada on that day?

I think they are deemed non-residents if under 183 days and NOT part of tax treaty, like Mexican's. I think Mexican's are non-residents as they can only stay 8 months? But they are taxed the same as each other...

J

janisbossenberry

Level 7

If they are from a non-treaty country (like Guatamala), they are deemed residents if in Canada more than 183 days. They are non-residents if under 183 days. The "deemed non-resident" rule (as opposed to deemed resident) only applies to treaty countries. Deemed non-residents and non-residents are taxed the same.

If they are deemed residents (from Guatamala, in Canada more than 183 days), you should be putting Canada and they are taxable on their full year's income, just like a permanent resident of Canada. They quality for all non-refundable tax credits, and should also get the GST credit.

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