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Returning non-resident: How to report worldwide income that was taxed

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Hi everyone

Until mid 2022, my family and I had been living abroad for 9 years (and filing taxes annually as non residents). This year, I am trying to figure out how to report my worldwide income (that was taxes in a tax-treaty country) and my Canadian income (that I earned after returning to Canada). 


If I report my worldwide income in line 10400 then I get taxed again on the income. However, I am not sure if it's appropriate to report this income in T1135, as this wasn't business income (just a standard salary).


Would love some help!

Returning resident

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This is the CRA ‘International Tax and non-resident’ phone number: 1-800-959-8281.

My understanding is that it is a ‘pragmatic rule’, since calculating foreign tax credits in a partial year is not advantageous, and can be penalizing to the taxpayer. Officially, you should be paying tax on your worldwide income for the portion of the year you were resident in Canada, and taxes as a non-resident for the other portion of the year. This usually results in substantial overtaxation, hence the ‘pragmatic rule’.


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Hello Returningresident,

Returning resident

If our understanding is correct, you were a non-resident for part of the 2022 taxation year and subsequently return to Canada (immigrated) at some time during 2022.

Please note, that as a non-resident of Canada you are only taxed on your Canadian source income during which time if your Canadian source income comprises of 90% or more of your worldwide income then you are also entitled to 100% of your non-refundable tax credits for this period.

To complete your return, you need to indicate your immigration date (the date you reestablished residential ties to Canada) and report your worldwide income your earned after this date. Your non-refundable tax credit will prorated according to the number of days you resident in Canada over 365 days for this period.

For Form T1135 it must be filed by a resident of Canada at the moment you’ve acquired foreign property (including foreign securities held with a Canadian broker) at the moment the cost was $CAD 100K or more (i.e. even before April 30th).

Link (CRA Non-resident guide)


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  • 10 months later...

Hi, I am a non resident starting 2023 and this is my first time to file NR return i  2024 I am using form 5013 R as I am a non resident for the entire year of 2023. Is it correct that federal surtax for this type of taxpayer is 48% of the federal tax? Also, as I am currently in Canada, can I mail or fax my return here to the Sudbury ON address? Then going forward from my country? Thank you.

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