When it comes to determining your residency status for tax purposes in Canada, the 183-day rule is an important guideline, but it’s not the only factor that matters. Here's what you need to know:
The 183-Day Rule
If you spend 183 days or more in Canada during a calendar year, you are generally considered a tax resident of Canada. But if you stay for less than 183 days, that doesn’t automatically mean you are a non-resident.
Other Factors That Determine Your Residency Status
Even if you spend fewer than 183 days in Canada, you could still be considered a resident for tax purposes based on other important factors, such as:
Primary residential ties: This includes having a home in Canada, a spouse or dependents living in Canada, and other personal belongings like a car in the country.
Secondary ties: Things like having a Canadian bank account, health insurance, or a Canadian driver's license can also influence your residency status.
If you have strong ties to Canada, you might still be classified as a resident for tax purposes, regardless of how many days you spend in the country.
What Does It Mean to Be a Non-Resident?
If you’re in Canada for less than 183 days and don’t have significant ties to the country—like a home or family here—you could be considered a non-resident. Non-residents are generally only taxed on income earned in Canada, not on worldwide income.
Final Thoughts
While staying in Canada for less than 183 days might suggest you’re a non-resident, your overall residency status depends on several factors, including your personal ties to the country. If you’re unsure about your status, it’s a good idea to consult with our tax professionals who can help you understand your specific situation.
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