Non-residents of Canada

If you become a non-resident of Canada, or are considered to be a non-resident for income tax purposes, you will be allowed to keep your TFSA and you will not be taxed on any earnings in the account or on the withdrawals.

No TFSA contribution room will accrue for any year throughout which you are a non-resident. Any withdrawals made during the period that you were a non-resident will be added back to your unused TFSA contribution room in the following year, but will only be available if you resume your residency status in Canada.

You can contribute to a TFSA up to the date that you become a non-resident of Canada.

If you make contributions to your TFSA while you are a non-resident, you will be subject to a tax of 1% per month on the amount you contributed for each month, ending at the earliest of:

• when the non-resident contributions are withdrawn from the account and are designated as a withdrawal in connection with the contribution; or
• when you become resident of Canada.

You may also be subject to a tax of 1% per month on excess TFSA amounts you contributed.

Even if you don't live in Canada, you may have residential ties which deem you to be a resident of Canada. These ties include where your home and personal property are, and where your spouse or common-law partner or dependants reside. Other ties that may be relevant include social ties, a driver's license, bank accounts or credit cards, and provincial or territorial hospitalization insurance. For more details, see Interpretation Bulletin IT221R3, Determination of an individual's Residence Status.

Forms and publications

• Interpretation bulletin IT221R3, Determination of an Individual's Residency Status