Canadian airline pilot living overseas

[1000tolevel]

Looking for someone with some knowledge of tax implications for pilots flying for a Canadian carrier and living overseas (aka. non-resident). The most recent post on the topic here is 4 years old and somewhat limited.
Please PM me if you prefer.

[Bede]

I've known a few guys who have done it. One guy dealt with an accounting firm that specialized in this. They had software that would look at the pilots' schedule and calculate the percentage time spent in Canadian airspace vs international airspace and remit taxes based on that.

Sorry that's all the info I recall.

[1000tolevel]

[quote=Bede post_id=1184044 time=1645129105 user_id=839]
I've known a few guys who have done it. One guy dealt with an accounting firm that specialized in this. They had software that would look at the pilots' schedule and calculate the percentage time spent in Canadian airspace vs international airspace and remit taxes based on that.

Sorry that's all the info I recall.
[/quote]

I hear that it is now based on 50% of your income on flights that either commence or terminate outside of Canada and 100% of domestic flights. But I’d like more in-depth info about the process.

I am a senior captain at a canadian airline and I have been contemplating moving to Portugal for the final 10 years of my career for climate reasons and also because it has a 10 year tax exemption on foreign income (from Canadian carrier).

[Stinky]

You’re correct. The law changed about a decade ago and is now 50% paid to Canada regardless of airspace.

When I did this the simplest way was to take my T4 income and divide it by hours flown to come up with an average hourly rate. Trying to calculate overtime, training etc would be pretty difficult.

Main thing for you is that you don’t maintain too many ties to Canada. I wouldn’t own a car or have an apartment in my name.

[Jetlifer]

Do you have reference to this information in the income tax act? Or otherwise?

[Stinky]

I used to do it. I used the 50% rule that is now required. I believe this is the ruling you want:
https://taxinterpretations.com/content/351751

[Xander]

It appears that the Price vs Canada decision upheld the airspace rule and as a non resident you are taxed based on airspace. Everything flown outside Canada is non taxable.

[CaptDukeNukem]

Looking for someone with some knowledge of tax implications for pilots flying for a Canadian carrier and living overseas (aka. non-resident). The most recent post on the topic here is 4 years old and somewhat limited.
Please PM me if you prefer.

https://www.canada.ca/en/revenue-agency ... anada.html

I suggest talking to an accountant.