If you are a Canadian tax resident considering moving to another country, understanding the tax implications of the Deemed Departure Tax in Canada is crucial. This tax, also known as the exit tax, involves a deemed disposition of all your assets (excluding those eligible for exemptions) at their fair market value (FMV) immediately before your Canadian tax residency ends. It’s a way for Canada to tax the gains accrued during your residency before you leave the country.
The Canadian Deemed Departure Tax was introduced to ensure that any gain earned while you were a resident of Canada is taxed before your departure. This policy was established following an incident where a prominent family left Canada with substantial untaxed gains, prompting the government to take action.
Navigating the complexities of the Deemed Departure Tax can be challenging, but it’s essential for anyone planning to move abroad. To help you understand this tax better and plan your move effectively, we’ve created a comprehensive ebook that details everything you need to know about the Deemed Departure Tax in Canada.
Download our ebook now for in-depth insights and practical advice on managing your assets and minimizing your tax liabilities when leaving Canada.