PENSIONS & INCOME TAX

The Canada Pension Plan (CPP) retirement pension provides a monthly benefit to eligible applicants.

You can apply for and receive a full CPP retirement pension at age 65 or receive it as early as age 60 with a reduction, (0.6 % for every month you are under age 65)

Your CPP retirement pension does not start automatically. You must apply for it. Before you apply, you must:

OAS Eligibility GO TO OAS WEB SITE

Your employment history is not a factor in determining eligibility: you can receive the Old Age Security (OAS) pension even if you have never worked or are still working.

Living outside Canada

Receiving Pension living outside Canada, you must:

If neither of the above scenarios applies to you, you may still qualify for an OAS pension, a pension from another country or from both countries if you have:

Taxes

Do I pay taxes if I live outside Canada ? YES on your Canadian Income, or if you elect to file under Section 217 of the Income Tax Act, you pay on your world income.

You were a non-resident of Canada for tax purposes in 2018 if one of the following situations applies to you:

You did not have significant residential ties in Canada and you lived outside Canada throughout the year, except if you were a deemed resident of Canada. For example, you could be a deemed resident of Canada if you were an employee of the Government of Canada posted abroad. For more information, go to Individuals - Leaving or entering Canada and non-residents.
You did not have significant residential ties in Canada and you stayed in Canada for less than 183 days in the year. Any day or part of a day spent in Canada counts as a day. If you lived in the United States and commuted to work in Canada, do not include commuting days in the calculation.
You were deemed not to be resident in Canada under the Income Tax Act because of the provisions of a tax treaty Canada has with another country.

Note:

You may not be considered a deemed resident if you left or entered Canada permanently in the year. For information about the rules that apply to these situations, see Pamphlet T4055, Newcomers to Canada or Leaving Canada (emigrants).

Unlocking GO TO WEB SITE

If the Canada Revenue Agency (CRA) determines that you are a non-resident of Canada for tax purposes, and confirms this in writing, then you may unlock your LIRA or LIF. Once unlocked, the funds may be transferred into a regular bank account or transferred into an investment account that is not subject to the Act.

Becoming non-resident of Canada

If the Canada Revenue Agency (CRA) determines that you are a non-resident of Canada for tax purposes, and confirms this in writing, then you may unlock your LIRA or LIF. Once unlocked, the funds may be transferred into a regular bank account or transferred into an investment account that is not subject to the Act. You do not have to wait until age 55 to access those funds, nor do the funds have to be paid out in a set manner. Taxation still applies on withdrawal. Most pension jurisdictions will require some proof of non-residency like confirmation from Canada Revenue Agency (CRA) and some time requirement like 2 years of non-residency before unlocking the pension is allowed.

REGISTER FOR CRA or SERVICES CANADA ONLINE

CRA Online

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CONSULTANT

CPP & OAS Pensions & Income Tax

CPP Eligibility GO TO CPP WEB SITE

be at least a month past your 59th birthday;

have worked in Canada and made at least one valid contribution to the CPP; and

want your CPP retirement pension payments to begin within 12 months

OAS Eligibility GO TO OAS WEB SITE

Living outside Canada

Receiving Pension living outside Canada, you must:

be 65 years old or older;

have been a Canadian citizen or a legal resident of Canada on the day before you left Canada; and

have resided in Canada for at least 20 years since the age of 18.

If neither of the above scenarios applies to you, you may still qualify for an OAS pension, a pension from another country or from both countries if you have:

lived in one of the countries with which Canada has established a social security agreement SEE Tax Treaty with Canada

Taxes

You did not have significant residential ties in Canada and you stayed in Canada for less than 183 days in the year. Any day or part of a day spent in Canada counts as a day. If you lived in the United States and commuted to work in Canada, do not include commuting days in the calculation.

You were deemed not to be resident in Canada under the Income Tax Act because of the provisions of a tax treaty Canada has with another country.

Note:

You may not be considered a deemed resident if you left or entered Canada permanently in the year. For information about the rules that apply to these situations, see Pamphlet T4055, Newcomers to Canada or Leaving Canada (emigrants).

Unlocking GO TO WEB SITE