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What is my residency and where should I pay tax?

I have just retired from the Canadian government, and will leave to work in South Africa later this month for a Canadian based company.

I intend to sell my Canadian house, buy a house in South Africa and my wife will live with me there.

As an expatriate, the South African Tax Admin considers me as a non resident, and will give me tax holidays for my earnings. It is also possible that Canada considers me as a non resident (with my principal residence being in south africa and my wife lives me there, etc).

If south africa considers u a non resident, it would do so if u are a cdn resident, or a resident of some other country. South Africa adopts similar "ordinarily resident" approach as in Canada. If u are a cdn resident, u pay cdn taxes.

Here is the CRA interpretation bulletin determing the residency of an individual:http://www.cra-arc.gc.ca/E/pub/tp/it221r...

If you want an official opinion about your residency status, u may complete and submit Form NR73 to the CRA, Determination of Residency Status (Leaving Canada). http://www.cra-arc.gc.ca/E/pbg/tf/nr73/R...

As long as you don't spend 182 days in Canada. Do not own a Canadian dwelling and you take your wife with you and do not have any dependents left in Canada then you are not a resident of Canada.

You should also get rid of your Canadian credit cards, bank accounts, gym memberships, any PO Boxes you might have, magazine subscriptions, golf club memberships, etc. Basically anything that implies you are going to return. The big factors are the dwelling and family but CRA does consider these factors but you'd need several.

Also don't renew your Canadian passport, driver's licence or medical insurance card.

CRA has a bulletin with the criteria the consider. Just google IT221R3 and you should get a CRA hit

As a general rule, you cannot be a non-resident of everywhere. If you are non-resident in SA, you are still a resident of Canada.

You MAY become a non-resident of Canada under certain stringent conditions, but only if you are resident somewhere else for tax purposes.

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