Personal Finance

Can a current foreigner (future permanent resident) pay Taxes in Canada by incorporating a business?

  • Last Updated:
  • Jul 13th, 2018 11:38 pm
[OP]
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Nov 9, 2017
120 posts
5 upvotes

Can a current foreigner (future permanent resident) pay Taxes in Canada by incorporating a business?

I would like to know if a foreigner can obtain a SIN or pay taxes and receive CRA assessments by means of incorporating a business with another Canadian citizen (51%/49% shareholder arrangement)?

The point is to receive CRA assessments and pay taxes.

Is that possible in anyway?

The person will be a permanent resident in couple years.
5 replies
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Jan 30, 2012
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snowhite445 wrote:
Jul 10th, 2018 9:20 pm
I would like to know if a foreigner can obtain a SIN or pay taxes and receive CRA assessments by means of incorporating a business with another Canadian citizen (51%/49% shareholder arrangement)?

The point is to receive CRA assessments and pay taxes.
Not sure what you are trying to do. If you are obligated to file and pay Canadian income tax then it isn't a choice - you have to pay.

If you live in another country, but have Canadian income (such as dividends from a Canadian company carrying on a business in Canada), then yes, you have to file and pay tax in Canada on that income.

https://www.canada.ca/en/revenue-agency ... sable=true

There may be a tax treaty between Canada and the country you currently live in that reduces Canadian taxes or eliminates double taxation.

If you don't live in Canada and aren't a deemed resident for tax purposes then you can file a special income tax return (Income Tax and Benefit Return for Non-Residents and Deemed Residents of Canada).

Instead of a SIN, you can get an ITN using Form T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Residents.
snowhite445 wrote:
Jul 10th, 2018 9:20 pm
The person will be a permanent resident in couple years.
Not relevant at all.
[OP]
Jr. Member
Nov 9, 2017
120 posts
5 upvotes
titaniumtux wrote:
Jul 11th, 2018 3:53 pm
Any current residency in Canada right now, even temporary?
Never been to Canada and out of country now too. But will be in CAnada in 2019 or 2020. But they want to start paying taxes as they will be forign owners and receive dividends.

Would they receive an ITN or SIN when filing for taxes in 2019?

To clarify fully, this person wants to be a 49% shareholder into a corporation. They will put money into the company as a loan and the company will pay them dividened every year. I am assuming company can't pay salary or T4 since they are not in Canada.
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snowhite445 wrote:
Jul 13th, 2018 6:56 pm
Never been to Canada and out of country now too. But will be in CAnada in 2019 or 2020. But they want to start paying taxes as they will be forign owners and receive dividends.

Would they receive an ITN or SIN when filing for taxes in 2019?

To clarify fully, this person wants to be a 49% shareholder into a corporation. They will put money into the company as a loan and the company will pay them dividened every year. I am assuming company can't pay salary or T4 since they are not in Canada.
They can apply for ITN now. Process probably takes a while. Can't file taxes without it.
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[OP]
Jr. Member
Nov 9, 2017
120 posts
5 upvotes
titaniumtux wrote:
Jul 13th, 2018 8:11 pm
They can apply for ITN now. Process probably takes a while. Can't file taxes without it.
Does CRA give assessment letter every year to them like it does to anyone else?

Also, do they need the ITN for incorporating the company? (51% Canadian resident citizen, 49% forigner non-resident).

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