Ask HN: Canada Departure Tax

#1

Post by leosantos » Wed, Jun 30, 2021, 5:30 PM UTC

I'm considering remotely taking up a job at a startup while based in Canada - and as part of the compensation I'll receive some equity.

I'm also considering relocating to where the startup is based in the US in 6 months - 1 year.

However, Canada has a departure tax, and I'm wondering if I would need to pay capital gains tax on the FMV of the equity that was granted to me while I was based in Canada - and what would be considered the FMV of the equity?

Re: Ask HN: Canada Departure Tax

#2

Post by foobarbazetc » Wed, Jun 30, 2021, 5:31 PM UTC

Gotta talk to an accountant/tax person.

Re: Ask HN: Canada Departure Tax

#3

Post by leosantos » Wed, Jun 30, 2021, 5:44 PM UTC

foobarbazetc wrote: post #2

Gotta talk to an accountant/tax person.

Any suggestions of a good accountant/tax person familiar with the nuances?

Re: Ask HN: Canada Departure Tax

#4

Post by jleyank » Wed, Jun 30, 2021, 6:18 PM UTC

If you are an american, things are more complex in that you continue to file US taxes while working/living in Canada. Not sure how this influences the departure tax, but as taxes here are slightly higher than the US (and there's Form 2555 or 1116) you won't pay unless you win the lottery... Overall, might actually be cheaper than California.

You can start here: https://www.canada.ca/en/revenue-agency/services/tax/interna...

There might be differences based on your visa/residency status (many US-ians get a NAFTA visa at the border upon entry with a job offer). If some company is offering, they have some understanding of this stuff I would think.