What is the criteria that the CRA uses to determine if one is a Canadian resident for income tax purposes?
Individual residency is on a case-by-case basis, and there are few strict rules. However, tax treaties can affect the way that residency is determined on a country-by-country basis. The CRA reviews your “residential ties” to Canada, how long you have been in the country, where you normally reside and a number of other factors to make its determination.
Which form do I fill out to determine if I am a Canadian resident for income tax purposes?
To find out whether the CRA deems you to be a Canadian resident for income tax purposes, you should fill out a N74 Determination of Residency Status if you are entering Canada: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/nr74/nr74-fill-s-17e.pdf, or an NR 73 form if you are entering Canada.
Does Canada’s taxation rules depend on Canadian residency or Canadian citizenship?
Canadian taxation obligations are based on your residency status and not based on your citizenship. To find out whether the CRA deems you to be a Canadian resident for income tax purposes, you should fill out a N74 Determination of Residency Status: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/nr74/nr74-fill-s-17e.pdf
I am a dual citizen of both Canada and a foreign country. Which country will I have to pay income tax to?
Who you pay taxes to will depend on the particular tax treaty that Canada has with the foreign country of your dual citizenship. Tax treaties often affect this, and typically work to prevent individuals being tax residents of more than one country.
It is common for Canadians who earn income in another country, but live in Canada, to have tax withheld at source in that other country. Where this occurs, or they otherwise pay tax in another country, a “Foreign Tax Credit” reflecting tax provided in Canada that offsets Canadian tax.
