Over the years I've spent countless hours researching that topic. All I ever see is the outright 25% reduction on the entire pension!!!! Yikes. It's always called a "tax" and I can never find if yes or no it is a prepaid INCOME tax. Never on an income tax website IIRC. Or just a spiteful fine on any peasant for daring to live outside gentle canada. If indeed a prepaid income tax does it come WITH an *income tax receipt* supplied/attached, every month. If one has income under the minimum that calls for an income tax at all, does one have to wait 15 months to file for taxes and get a full refund of that giant missing piece of the pie.... that was already prepaid years earlier, with prepaid premiums? I also vaguely remember finding some bla bla or other, about the 25% being much less .... for only a few select rich countries and ph not one of them. I'M CURIOUS: I'd welcome comments from people who have real experience in how well this all worked out for them. How the "out of canada" status happens.... Tks much. Christian Looks like the US is the country with the most respect for their retirees?
The tax treaty between Canada and the Philippines calls for a 25% withholding tax. If you read further into the treaty it states that Canadian pensions are taxable in the country of origin. Basically the same deal as OFWs where the Philippines does not tax income of OFWs or pensions from abroad.. You do not need to file an income tax return in the Philippines but you do need to file a tax return in Canada. When you file your tax return with Canada you should get the 25% withheld taxes back at tax time. File an NR5 forum with Revenue Canada and they can reduce the withheld taxes from 25% to 5%. You can reclaim the 5% at tax time. I have been using Turbo Tax online (as recommended by Revenue Canada). You must print out a hard copy and mail your tax return to Rev Can as they will not accept an electronic copy.
