Canada Tax Policy
People are attracted to Canada for many reasons: stable political climate, safety and security, universal healthcare, good job opportunities, excellent educational facilities, clean air and a well deserved reputation for quality of life are just some of them. Tax benefits, however, are not usually included on this list. They should be.
To begin with, the following principles of taxation apply:
- Canada taxes individuals on the basis of their residence and not their citizenship. A Canadian Permanent Resident may apply for Canadian citizenship and a Canadian passport after four years.
- Canadian citizens who are non-residents of Canada do not pay Canadian tax on their worldwide income. Non-residents pay Canadian tax only on certain Canadian-sourced income and capital gain.
- There are no estate duties or succession duties in Canada.