Introduction Canadian Tax Canadian tax is based on residency. Residents of Canada are subject to tax on their world wide income. That means that no matter where the income is earned, if you are a resident of Canada, you are required to pay tax to the Canadian government on that income. A person can be a factual resident of Canada or a deemed resident depending on residential ties and treaty tie-breaker rules (more on the treaty later). Non-residents, on the other hand, are subject to tax only on Canadian source income. This will normally fall into two types of.
