Hire an International Tax Accountant to Help You with International Tax Planning

International tax planning involves strategies to reduce or outright eliminate the payment of income taxes and other taxes. Global tax planning doesn't mean illegal tax evasion. There is a big difference between tax evasion and legal tax avoidance. Evasion means lying, hiding, fraud, perjury, and other illegal ways to hide income which is a crime in most countries. Legal tax avoidance is using a global tax plan to legally avoid paying taxes.

International tax planning usually includes the use of offshore corporations to be created in countries who do not tax their corporations doing business outside of the country. All of the earned income and passive income (like bank account interest) are tax free. Products or services being sold by these corporations to other countries makes them "offshore" corporation in regards to generating income. Offshore corporations also get their name because they exist away from the client's home country.

Here are few advantages of effective international, or overseas, tax planning:

• Taking advantage of double taxation treaties between your resident country and other offshore countries
• Legally minimizing international tax liabilities
• Improved financial efficiency
• Maximize working capital
• Protecting business, and personal, assets

An effective, well-structured global tax planning strategy can legally benefit an international business in a number of areas. It can be a complex process, especially when multiple jurisdictions are involved. There are a number of fundamental issues to consider before deciding on an optimum strategy and this is the reason why using an experienced professional can be valuable. They will assist with both developing the most suitable strategy and avoiding potential issues from arising.

Hence, it is important that you understand the tax related laws and rules of your home country as well as of the new country, where you are planning to settle. In addition, you will need to focus more towards global tax planning.

Finding a competent tax accountant to come up with an international tax plan takes a little research. The internet is filled with law firms and legal entities creation companies all claiming they can do "asset protection" or can eliminate income taxes or do asset management and other forms of a global tax plan.

International tax accountant can also help in your global taxation planning. In fact, they have too a good understanding about offshore tax related rules and breaks. However, appointing an international accountant will be of no use if your prime concern is about offshore banking advantage and investment. They can actually advise you on the residency related rules and laws.

Overview On Canadian Nonresident Tax Filing

Income tax in Canada is levied not just on Canadian citizens but on non-residents too and the income that nonresidents earn from Canadian sources will be taxed. Nonresident tax is levied only on the income that is received from sources in Canada and the worldwide income of the nonresident is not considered for taxation. For most of the nonresidents that income tax is deducted at source from the gross pay when being paid to them by the employer and the tax that is deducted is deposited by the employer to the Canadian Revenue Agency (CRA). To know if you are liable to pay nonresident tax, you will first have to determine your Canadian residency status with regard to taxation.

Ascertain Your Canadian Residency Status

There are a lot of factors that are considered while determining the residency status of an individual in Canada. The most important factor is said to be the residential ties that the non-resident has in Canada or is in the process of establishing. Some of the factors that are considered to be residential ties to Canada are

• Having a home in Canada

• Having personal property in Canada (car, furniture, etc.,)

• Have economic ties with Canada

• Have a spouse or dependents or common-law partner in Canada

• Having social ties in Canada

• Canadian driving license

• Canadian bank account or Canadian credit cards

• Health insurance with any of the Canadian territories or provinces

If you still are not able to identify your residency status then you can fill in the Form NR74 or NR73 and then send it to the International Tax Services Offices to seek clarity on your residential status.

Getting the Relevant Forms Needed for Tax Return Filing

If you have to file nonresident tax then you will require obtaining a few forms like the Canadian T4 form that is supposed to be given to you by the Canadian employer. The T4 form will have a summary of all your earnings and deductions that have been made by the employer and are usually mailed to the address that is given by the nonresident to the employer. These forms are important for international tax filing and therefore ensure that the correct address is given to the employer to receive them. Employers will issue the T4 form generally between January and March so that you can file the nonresident tax return by April 30th.

Completing and Filing the Tax Return

You will require the T1 Return form to file your nonresident tax and the tax package that is required will contain forms like 428 forms, Schedule 1 Federal Tax form, Schedule A form and the T4 form. If you are not comfortable filling in the form, then you can always avail the services of a tax accountant of taxi companies who will get your form filled for a small fee. Once all the forms are filled and checked properly you can mail the return forms along with the original T4 form that is received from your employer to the International Tax Services Office.