Tax Services for Canadian Foreign Service Officers Abroad

Plan ahead your tax affairs and avoid surprises.

█ Pre-departure checklist

KEY TAX CONSIDERATIONS

▪ Residency status in Canada

▪ Implications of becoming a non-resident of Canada (spouses and dependants only)

▪ Residency status in the host country (spouses and dependants only)

▪ Possible tax liability in Québec (if resident of Québec before posting)

▪ Adjustments to income tax and social security withheld at source

▪ Additional expenses not covered under the Foreign Service Directives (“FSD”)

FAMILY

▪ Tax implications of spousal employment in the host country

▪ Tax implications in Canada for the spouse (Tax liability, pension and benefits, etc.)

▪ Access to federal and/or provincial/territorial benefits and allowances 

▪ Access to benefits for children to be born abroad

RENTAL PROPERTY

▪ Change in use rules when you start renting your residence  to a third party

▪ Relevance of electing under Subsection 45(2) of the Income Tax Act to avoid the change in use rules

▪ Optimization strategies for the principal residence designation

█ Ongoing Compliance

▪ Additional compliance requirements

▪ Efficient management of tax installments

▪ Review of CRA/Revenu Québec’s decisions

█ Cross-Posting/Return to Canada

▪ Change in use rules on real properties

▪ Review and adjust tax optimization strategies

Contact us to discuss your situation and see how we can help.