RESIDENCY STATUS CHANGE

Avoid Tax Surprises With a Correct Residency Status

A simple residency update can save you from major tax headaches. Find out your correct status and file with peace of mind.

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What you need to know about residency status changes

Why your residency status matters

Changing where you live can also change how the Canada Revenue Agency (CRA) taxes your income. Whether you’re leaving Canada, returning home, or moving to Canada for the first time, your residency status determines how much tax you owe, what income must be reported, and which credits or benefits you qualify for.

Moving in or out of Canada?

If you recently moved out of Canada, you may now be considered a non-resident for tax purposes. That means you only pay tax on Canadian-source income, such as rental income, investments, or pensions. On the other hand, if you moved to Canada, you may become a resident or deemed resident, and your worldwide income becomes taxable in Canada.

Report your expenses and save big

If you’re unsure whether you’re a resident, non-resident, or deemed resident for tax purposes, a professional tax review can help ensure your situation is correctly classified with the CRA. C.A.T.S Accounting specializes in non-resident tax and we know the ins and outs of cross border tax preparation..

Never pay more than you need to

Share information about your self-employment, freelance, or rental income, and every required tax form is added for you.

Whether you’re living in Canada or abroad, all available deductions are identified to help increase your tax savings.

Enjoy peace of mind knowing your return is accurate, compliant, and optimized for the highest possible refund.

Why choose C.A.T.S for your residency status change?

Maximum Refund Guarantee

We search for every eligible deduction and credit to maximize your return.

Specialists in Non-Resident Tax

We understand the complexities of cross-border income, residency changes, and foreign asset reporting.

Completely Done-For-You Process

Send us the required documents and let our team of tax professionals handle the rest.

Why Our Clients Love Us

  • "My Go-To for Years"

    C.A.T.S Accounting have been my go to tax consultants for years. Great service, very attentive and always on the mark. I highly recommend them.

    Amr A.

  • "Eliminated My Anxiety About Taxes"

    There are not words grand enough to express how much I enjoy working with [Tax Professional Name] and his fantastic team or how they have cleared the cobwebs from my mind thus reducing the anxiety associated with taxes. I am so blessed to have an accounting group to trust and console with at unexpected times. Thank you for your care and attention!

    Kiki N.

  • "Made My Taxes Less Painful"

    Excellent work. Your knowledge and guidance helped my tax issue to be less painful. THANK YOU!!

    Melia T.

  • "They Have Taken This Huge Tax Burden Off My List"

    As a busy real estate broker, my book keeping and tax submission has always been a worry for me. I started using Canada Accounting and Tax Services last year, and they have taken that huge burden off my list. [Tax Professional Name] and his team have managed to organize my books and streamline my tax submission. I highly recommend their services.

    Michael A.

  • "Exceptional Customer Care and Commitment"

    I would like to thank C.A.T.S Accounting office for their professionalism and sincere dedication in providing their accounting tax services to me throughout the past years. I’ve had a consistently and very positive experience with the office that continues to date. [Tax Professional Name] and his team go always extra mile to make sure everything is done properly, using all the tools and knowledge at their disposal. It is rare to encounter such a high standard of care and commitment. I wish them all the best and to many more successful years ahead.
    Thank you again🙏🏻

    Sherine B.

  • "Couldn't Recommend Them Enough"

    I have been going to CATS accounting for over 10 years now. I have never been disappointed and have never had any mistakes on my files. All the accountants are thorough, professional and very adept at what they do.

    Nadia W.

  • "Never Pay More Taxes Than Needed"

    C.A.T.S handles my personal and business accounting , excellent service , they do their best to ensure that you are not paying more than what you have to

    Ziyad M.

  • "Corrected Mistakes On My Previous Years' Taxes"

    Years ago, when a student, I had made a mistake on my taxes (doing it on paper, not using software). OSAP was not going to provide funding for my second undergraduate degree until my taxes were corrected. C.A.T.S. Accounting corrected the mistake and verified the previous few years of taxes. I have been using C.A.T.S accounting ever since

    Sheldon M.

  • "Exceptional Dedication to Client Service"

    I've been working with [Tax Professional Name] and his team at C.A.T.S Accounting for both my business and personal accounting needs since 2013 and I highly recommend their services.

    What distinguishes C.A.T.S Accounting is not only their comprehensive knowledge of accounting but also their exceptional dedication to client service. They are consistently available for queries, insights, and support, guiding me through every financial decision with ease. Their detail-oriented and proactive approach ensured a smooth and worry-free accounting process.

    Rami K.

  • "Impressed With Their Professionalism"

    Used CATS for the first time. I was very impressed with their professional method of getting taxes done. I highly recommend them

    Moez W.

Frequently asked questions

  • Residency status determines how the Canada Revenue Agency (CRA) taxes your income. Canadian residents are taxed on worldwide income, while non-residents are only taxed on Canadian-source income. Your ties to Canada, including your home, family, or employment, help determine your residency status.

  • The CRA looks at several factors, including where your permanent home is, where your spouse and dependents live, where you hold bank accounts, and where your personal belongings are located. If you leave Canada permanently and sever most residential ties, you may be considered a non-resident for tax purposes.

  • To change your residency status, you must inform the CRA by filing the correct forms and reporting your income according to your new status. When leaving Canada, individuals typically complete a departure return, while those entering Canada file a new resident return. Supporting documentation about your move and ties to or from Canada is often required.

  • As a non-resident, you only pay tax on Canadian-source income, such as rental income, pension, or employment income earned in Canada. Non-resident withholding taxes (often 25%) may apply, though in some cases, filing special returns like Section 216 can help reduce the amount of tax you owe.

  • If you return to Canada and re-establish significant residential ties, you become a resident again for tax purposes. You’ll start reporting your worldwide income from the date you became a resident. It’s important to inform the CRA as soon as your status changes to avoid double taxation or compliance issues.

  • Yes. When your residency status changes, you must file a departure return (the year you leave) or a new resident return (the year you arrive). These returns ensure the CRA correctly calculates your taxable income for the portion of the year you were a resident.

  • Yes. Benefits like the GST/HST credit, Canada Child Benefit (CCB), and Old Age Security (OAS) are typically only available to residents of Canada. Once you become a non-resident, these payments stop unless you meet specific exceptions or treaty conditions.

  • Processing times vary depending on your documentation and the complexity of your situation. In most cases, it can take several weeks for the CRA to review your information and confirm your new status. Keeping your paperwork complete and accurate helps speed up the process.

  • Yes. You may need to update your address and residency status with banks, investment firms, insurance providers, and government agencies such as Service Canada or your provincial health plan. This ensures accurate tax reporting and benefit eligibility.

  • Your residency status determines how much tax you pay, what income you must report, and which deductions or credits you can claim. Filing under the wrong status can lead to penalties, double taxation, or missed refunds, which is why it’s crucial to get it right before submitting your return.

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