Canada taxes global income. Non-residents are taxed only on Canadian-sourced income. An individual is considered a permanent resident for tax purposes in Canada if he or she resides in Canada for 183 days or more in a year in Canada, or if he or she has a personal connection to Canada, such as a family, economic and social with the nation.

Provincial income taxes are determined separately and in addition to federal taxes to achieve different margins for individuals; now they can reach 54%. There is no inheritance or gift tax, and Canada does not tax wealth. However, there is a capital gains tax (at a reduced rate for residents). These provisions apply in lieu of gift or inheritance tax: the transfer of property as a gift or upon death does not result in any gift or estate taxes; Instead, there is an allocation to fair market value for the income tax payable by the gift giver or the decedent’s estate.

Canada has an extensive network of tax double agreements.