What makes someone a deemed resident of Canada for income tax purposes even if they live abroad?

Canadian residency for income tax is primarily a factual question, but the Income Tax Act also creates "deemed resident" status for certain people regardless of where they physically live. Two main categories apply.

First, individuals who sojourn (are present) in Canada for 183 days or more in a calendar year are deemed to be Canadian residents for the entire year — even if they have a home and tax ties elsewhere. This can be a surprise for someone splitting time between Canada and another country.

Second, certain categories of people connected to the Canadian government — federal and provincial government employees posted abroad, members of the Canadian Armed Forces overseas, and their dependants living with them — are deemed residents regardless of where they are stationed.

Deemed residents are generally taxed in Canada on their worldwide income, the same as factual residents. However, tax treaties Canada has signed with other countries can reduce or eliminate double taxation. If you spend significant time in Canada while maintaining a foreign home, getting advice before filing is important — the consequences of getting residency wrong can be significant.