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Income Tax?

Posted By: peterh

Income Tax? - 08/29/12 09:05 PM

I would like to retire to Belize but my country ( Canada ) doesn't have a tax treaty with Belize. Will I have to pay tax on my pension from Canada in Belize?


Thanks....Peter
Posted By: Loansum-Al K

Re: Income Tax? - 08/29/12 10:05 PM

My guess would be no, since it is not "earned" income resulting from being employed in Belize.
Posted By: LarkCayeRes

Re: Income Tax? - 08/30/12 12:26 AM

If you are not a resident of Canada you do not have to pay Canadian income tax. You need to clear out of Canada to qualify. Make sure you talk to revenue Canada.
Now the fun can start... Belize does not tax income earned in foreign countries. Set up a Panamanian company, do your investing through that. There are no taxes in Panama, Belize, or Canada. And it is legal.. Please let me know how it goes smile
Posted By: SP Daily

Re: Income Tax? - 08/30/12 12:32 AM

And you can list this message board as your tax advisor...
Posted By: LarkCayeRes

Re: Income Tax? - 08/30/12 12:46 AM

Well the first part is true. What sources of income will you have? RRSPs/rental income on Canadian property? They may be hard to handle. You will want to get a real tax lawyer.
Posted By: peterh

Re: Income Tax? - 08/30/12 01:03 AM

Originally Posted by LarkCayeRes
Well the first part is true. What sources of income will you have? RRSPs/rental income on Canadian property? They may be hard to handle. You will want to get a real tax lawyer.



I will have a good company pension along with my Canada pension, my wife will have the same.
Posted By: seashell

Re: Income Tax? - 08/30/12 08:04 AM

My father lives in a country that doesn't have a tax treaty (or whatever) with Canada and his government CPP cheques have an automatic 25% tax deduction. That said, there may be some recovery from annual filing. Sorry for not having more clear info in this regard. We are still in the process of trying to clean up this matter because a number of years ago, he was advised that as a non-resident, it was not required that he file Cdn taxes. So he didn't which resulted in an OAS clawback and no further OAS payments. Now, in order to get the OAS payments reinstated, we are filing all his back tax returns and have yet to find what the ultimate result will be. We've also been advised by employees of Rev Canada (once) that he will recover all of the past payments, and then another advice that he will only recover the 11 months previous to final RevCan acceptance of up to date filings. The only reason I'm telling this somewhat personal info is to mark my agreement that you really need to get correct tax advice . . . which may not come from RevCan. Can't stress strongly enough, that you should seek expert advice from a tax specialist CA.
Posted By: peterh

Re: Income Tax? - 08/30/12 02:33 PM

Yes the government website is quite clear that you will lose your OAS if you leave the country. We are okay with the fact that we will still have to file a Canadian tax return every year and pay Canadian taxes,we are just trying to avoid being double taxed. smile
Posted By: LarkCayeRes

Re: Income Tax? - 08/31/12 12:39 AM

I don't think Belize taxes you on your foreign earnings. You are considering the QRP program? Look into the effect of loosing OHIP if you give up CDN residency (I would like to know the cost of replacement medical). I think which is best depends on the size of the company pension. You could just Snowbird, and visit as a tourist.
Posted By: Cooper

Re: Income Tax? - 08/31/12 04:58 AM

Be careful. I have several Canadian friends that have Belize residency and they have lost any access to Canadian medical or retirement benifits. Unless they return for a long period of time. You can live here for several years doing monthly visas. And keep your Canadian status..
Posted By: peterh

Re: Income Tax? - 08/31/12 05:00 AM

Yes we will most likely go with the QRP program. I recieved a quote from "Healthcare International" for $6187.20, that is full coverage for both of us anywhere in the world. A little steep for my liking and I'm just looking for "local" healthcare anyway. I'm awaiting a quote for that from "Bupa". We have thought about doing the snowbird thing, but my wife want's to move out of Canada and live somewhere full time. We will most definately rent a place for at least 6 months before spending any hard earned cash on a purchase.
Posted By: peterh

Re: Income Tax? - 08/31/12 05:07 AM

Originally Posted by Cooper
Be careful. I have several Canadian friends that have Belize residency and they have lost any access to Canadian medical or retirement benifits. Unless they return for a long period of time. You can live here for several years doing monthly visas. And keep your Canadian status..



Hi cooper,yes we will lose our Canadian healthcare for sure. That's why I'm looking at other options. Our Canada pensions and company pensions will be deposited into our Canadian bank account here and we will transfer what we need to live on to a bank in AC. We will still be taxed on our Canadian income and have to file a Canadian tax return every year. We wont be cutting all ties to Canada as our children and grandchildren are here. ( Reason to come back smile
Posted By: LarkCayeRes

Re: Income Tax? - 08/31/12 12:29 PM

If you are paying CDN taxes, why not keep a residence and collect OAS? Buy a little car, let one of the Grand kids drive it, rent the wood shed from one of your kids, fly out of the USA... Bobs your uncle..
Posted By: LarkCayeRes

Re: Income Tax? - 08/31/12 12:30 PM

And keep OHIP
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