Posted on: 04th May, 2006 01:27 am
I am an Aussie working in an incorporated company at Quebec for last 7 years. Now, me and my wife plan to shift Australia in August, this year. I have around $56,000 invested in RRSP account in the last 5 years. I will keep the contact alive with the company until the entire outstanding are fulfilled. That mean posting another company there is a tax return in September, 2006.
But, how cashing in the RRSP will be taxed? From the $56,000, what would be left?
But, how cashing in the RRSP will be taxed? From the $56,000, what would be left?
Hi
I am assuming that this is your permanent shift to Australia as you are an Aussie. So if you maintain a home or other residential ties to Canada then there is little you can do other than leave it in the RRSP account or withdraw the money and add it to your income. And the total income is taxed at your marginal tax rate, which is never a good option.
If you are leaving Canada as non-resident (Generally it's better to wait until you are non resident) then just close the RRSP account. Only, you need to pay a flat tax of 25% which is taken off right at that time.
One matter you need to be little careful. If you choose the non-resident option then make sure that the bank has flagged your account as non-resident before you withdraw the money.
Hope, it will clear your little bit of confusion.
Thanks
SJ
I am assuming that this is your permanent shift to Australia as you are an Aussie. So if you maintain a home or other residential ties to Canada then there is little you can do other than leave it in the RRSP account or withdraw the money and add it to your income. And the total income is taxed at your marginal tax rate, which is never a good option.
If you are leaving Canada as non-resident (Generally it's better to wait until you are non resident) then just close the RRSP account. Only, you need to pay a flat tax of 25% which is taken off right at that time.
One matter you need to be little careful. If you choose the non-resident option then make sure that the bank has flagged your account as non-resident before you withdraw the money.
Hope, it will clear your little bit of confusion.
Thanks
SJ
We have an investment property in Canada but we will be moving to Australia in next 2 years. We decided to come back every year for about 45 days to check the property. My husband plan to working in Australia and hope to continue investing there. But if he also has rental income from here, then Canadian tax dept insist him to include Aus income as well. But taxed twice is really very unfair.
What the best way to deal with this type of situation?
What the best way to deal with this type of situation?
There is no question of taxed twice. But the only problem is which government does actually deserve to get paid.
I personally assist to consult an accountant with experience in this type of situation.
Thanks
Olivia
I personally assist to consult an accountant with experience in this type of situation.
Thanks
Olivia