Blog » Children Attending University Abroad
October 3rd 2023Do you have adult children attending University abroad? If that child had plans to continue to work abroad after completing university, he/she could legitimately file his tax return as a Non-Resident of Canada. If for example that child where living in the UK, he /she would be considered a temporary resident and dividends paid to such child (provided they were received outside of the UK) would not be taxed within the UK; this would be subject to a 15% withholding tax (Canada).
A discretionary dividend could be paid from the family holding company or operating company; the child as non resident could then settle those funds on a non resident trust (there being no connected contributor).
DISCLAIMER: This document is written for general information only. It is not intended as legal advice or opinion.
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