The Canadian Exit Tax Book

Similarly to many other developed countries, Canada imposes exit tax on individuals who cease being Canadian residents. Therefore, such individuals are advised to carefully plan their departure from Canada in order to ensure that they will not be surprised by an unexpected exit tax bill.

In this eBook, we discuss the Canadian exit tax and related concepts with the aim to provide our readers with a better understanding of the tax implications associated with their emigration outside Canada.

More specifically, we will begin this article with an examination of the conditions one needs to meet in order to end one’s Canadian tax residence (Section 2).1 Afterwards, we will analyze the characteristics of the Canadian exit tax (Section 3) and will provide recommendations on how to reduce the amount of that tax (Section 4). We also explain in detail how Canada taxes Canadian income generated by non-residents (Section 5). At the end of this article, we provide concluding remarks (Section 6).

• 1. Introduction
• 2. Ending your canadian tax residence 
• 3. The Canadian exit tax 
• 3.1 the assets to which the exit tax applies 
• 3.2 deferment of the exit tax 
• 3.3 readjustment of deemed dispositions 
• 3.4 disposition of property after departure from Canada 
• 4. Reducing the Canadian exit tax 
• 5. Taxation of Canadian income generated by non-residents 
• 6. Concluding remarks