bringing money to Canada
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Posted on: 01-11-08 14:04:01
from secure investments and regularly pay 15% (I ask the institutions to deduct that much and pay it to the US IRS). When filing the US tax, I simply attach the statements from various sources I make money from and send it off. I use copies of the same statements to file Canadian taxes and also to calculate the global part of the total income. If you have lots of greenbacks, you are much better off investing in the US than in Canada (even the GIC rates in the US are about 4.75 right now versus 2.5-2.75% in Canada). My advice to you, if you have a bag of green, find a nice bank in the US (hint: State Bank of India, Park Ave, New York) and park your money there. Do tell the bankers to subtract 15% from your earnings and send it to the IRS. It makes easier to just stick the statements to the tax form than run around here buying the US funds!
Thank you everybody. I really appreciate all the responses and information.
My self and my wife worked in US for 4 years on TN Visa. We contributed towards social security. Is there any treaty between US & Canada that allows social security to be transferred to Canadian pension plan? or do I need to say Sayonara to social security. We are Canadian Citizens and not US citizens or green card holders.
I have NRE account (created from Gulf) in India.
1) How much money in a year can I bring (by wire transfer) from India to Canada, without paying tax?
2) Do I need to mention in the Canadian tax return?
3) Do I need to inform RBI or any Government Institute in India about this transfer?
Thanks.
3 years back I transferred money from my NRE account in ICICI bank. There is a form you need to fill, show proof how did you get this money, get a chartered accountant to certify. With this information, The bank will transfer money to your oversees account in dollars. I did not pay any tax on this.
Hope this helps.
Quote:
Originally posted by khpsrj
I have NRE account (created from Gulf) in India.
1) How much money in a year can I bring (by wire transfer) from India to Canada, without paying tax?
2) Do I need to mention in the Canadian tax return?
3) Do I need to inform RBI or any Government Institute in India about this transfer?
Thanks.
Though you have not mentioned your location but I am assuming that you are a Canadian PR who opened this NRE account in India before migrating to Canada. Also, after becoming a PR of Canada, you have not remitted any amount to that account from here. If that's the case then the balance in that account on the date of your becoming PR would be exempt from paying any taxes in Canada and you can bring that money here and you do not have to either inform Canada Revenue Agency or add that money to your tax return. You only need to report it on your tax return if your total asset outside Canada are over Can $ 100,000 or more. You can bring in any amount of money from there to here through proper banking channels and you should keep proper paper trail if in case the CRA or FINTRACK would like to see the source of that money.
However, whatever interest income you earned on that money after becoming a PR of Canada has to be reported (or should have been reported) on your tax return in Canada as here you have to report your worldwide income on your tax return. As far informing RBI or any Indian Institute is concerned, you do not have to worry as your Bank would take care of that reporting to RBI etc. Also, note that interest income earned on NRE accounts is not taxable in India so you do not get any tax credit for that amount here.
Also, If you remitted any money to that NRE Account after becoming a PR then you would have records of that too and you can bring that money back here without having to pay any tax on the principal amount but again the interest income earned would have to be included in your Canadian Tax Return.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
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Though you have not mentioned your location but I am assuming that you are a Canadian PR who opened this NRE account in India before migrating to Canada. Also, after becoming a PR of Canada, you have not remitted any amount to that account from here. If that's the case then the balance in that account on the date of your becoming PR would be exempt from paying any taxes in Canada
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Although i understood your reply and can conclude the message, i am mentioning the facts for the benefit of others.
Your assumptions are correct. I am Canadian PR who had opened this NRE account from Gulf before (coming to canada) becoming Canadian PR. Also I did not remit any amount from Canada and all money in NRE account was remitted from Gulf.
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You only need to report it on your tax return if your total asset outside Canada are over Can $ 100,000 or more.
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If it is reported on tax return, do i have to pay tax?
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However, whatever interest income you earned on that money after becoming a PR of Canada has to be reported (or should have been reported) on your tax return in Canada as here you have to report your worldwide income on your tax return. As far informing RBI or any Indian Institute is concerned, you do not have
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Is interest income in Indian NRE account taxable in Canada?
Thanks a lot.
We are planning to land soon from Middle East. Should we declare all cash above 10K and repatriable deposites and real estate assets in India during landing? Will they be taxable in Canada or is it possble to bring them later on without being taxed, if we get settled in Canada. Somebody was suggesting to come with minimum required fund. Which is better?
kpv343
