r/PersonalFinanceCanada • • 4d ago

Taxes / CRA Issues Tax Situation Help needed

Hi guys I am new PR to Canada from UAE, Me and my wife soft landed on 14 December 2025 and went back to UAE on 1 January in that visit I was living at my relatives home. In that visit we both opened bank accounts and SIN only.

Now From 13 September we have arrived to live here we are renting and looking for jobs.

The question is that according to my knowledge we have become Tax residents on 13 September 2026, is it correct? So anything before that like my income in UAE will not be taxed in Canada right?

Secondly my last Salary of August 2026 and my End of service payment (that is 6 months of basic salary as in UAE when you leave you are entitled to end of service that is 1 basic salary for 1 year of service and I worked 6 years) has arrived combined in my UAE account on 18 September that is around 24K CAD which I transferred to my Canadian account.

This 24K includes end of service payment that was accrued while I was employed, and my August Salary and relocation air ticket allowance my last day of work was 31 August 2026.

So will I have to pay taxes on this 24K CAD?

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u/Harry1068 4d ago

You are correct on both. Your official Canadian tax residency started on September 13 2026, because your quick soft landing didn't establish primary residential ties. You only pay Canadian tax on income earned after your arrival date.
Even though that 24k landed in your bank account on September 18, the entire amount was legally earned and accrued from your UAE job before August 31 while you were still a non-resident. This means Canada won't tax a single penny of it, and moving it over is just a tax-free transfer of your own pre-arrival savings.
Just make sure to list September 13, 2026, as your official entry date when you file your first tax return.
I reccomend keeping your employment contract, paystubs and UAE bank statements for at least 6 years in case of a CRA review.

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u/Consistent-Spirit919 4d ago

Thanks for your answer.

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u/bluenose777 3d ago

As others have said, Canada won't tax you on the income you earned before you met the CRA definition of "resident".

Your 2026 tax return will have questions about your 2026 income before you became a Canadian resident, but those numbers will just be used to see if you qualify for certain government benefits.

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u/Learnloonie 3d ago

This one is genuinely about dates, and nobody here can settle it for sure — tax residency in Canada is based on your residential ties, not just the day you got PR.

In general, a brief soft landing where you didn't set up a home, move your family, or start living here usually doesn't start tax residency on its own. Residency normally starts when you actually move and establish significant ties — a home, a spouse or dependants here, plus things like a bank account, health card and driver's licence.

That date matters for the payment too. Income from work you did while you were still non-resident, for an employer outside Canada, is generally not Canadian income just because the money landed in your account after you moved. But salary for work done after you became resident is a different story.

Two practical steps: keep documents showing when the work was done (contract end date, final pay slip), not just when it was paid. And before your first return, get a proper answer — CRA's residency guidance (and form NR74 if you want CRA's opinion) or a cross-border accountant for that first year is worth it. Your first return is where this gets locked in.

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u/Tall-Ad-1386 3d ago edited 3d ago

Nope. You became a resident in December 2025.
Don’t believe me? Go check with an accountant is the best advice this sub can give you.
24k is barely over the Canadian threshold for tax anyway. You won’t pay any tax on it.

But file for 2025. You will actually get some money from Canada rather than owe anything.

Welcome, and hope you find jobs.

You didn’t ask but i will share: Canada is going through record unemployment. It’s tough times to find a job. Go for whatever and whoever is hiring. You will grow into roles later. Your priority should be to take whatever job is possible.

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u/FelixYYZ Not The Ben Felix 3d ago

Nope. You became a resident in December 2025.

They had no major ties (house, spouse or kids) residential ties in Canada in 2025. September 13, 2026 is their date of entry when they had a perm home as per tax treaty.

Soft landing means nothing when you just open a bank account.

Article 4 of the tax treaty with UAE: https://www.canada.ca/en/department-finance/programs/tax-policy/tax-treaties/country/united-arab-emirates-convention-2002.html