The term factual resident means that although the tax payer is not in Canada, they are still considered a resident of Canada for income tax purposes. A taxpayer is considered a factual resident of Canada for tax purposes if residential ties with Canada are kept while travelling or living abroad.
Individuals are factual residents for tax purposes if they:
- Work temporarily outside Canada
- Teach or attend school in another country
- Commute daily or weekly to the United States to work
- Are taking a vacation outside of Canada
For more information, please contact the International Tax Services Office.
The tax return should be prepared just as you would for an ordinary Canadian resident. The taxpayer will report all income they receive from sources inside and outside Canada for the year, and claim all deductions that apply to them. Income earned outside of Canada has to be reported in the Foreign form.
Note: As a factual resident, the taxpayer does not need to enter the date of departure.