Immigration | Returning to Jamaica from Canada

Dear Miss Powell,

I read an article that you shared about coming to Canada and things you should do. I’ve been in Canada 18 years. Now that my kids have finished university, I think it’s time I go back to Jamaica. Are there things I should take into consideration before I leave? What about my benefits like CPP and OAS? Will I still get them if I leave? Thank you for your usual informative articles.

J.S.

Dear JS,

It depends on your immigration status, your age, and how you plan your departure. You came to Canada with a plan. Leave with one.

ARE YOU A CITIZEN OR PERMANENT RESIDENT?

Moving to Jamaica does not affect Canadian citizenship. A citizen can live abroad and return whenever they wish.

A permanent resident does not have that freedom. You must spend at least 730 days in Canada in every five-year period. Live in Jamaica longer than that, and your status is at risk.

If you are still a permanent resident, look at citizenship before you move. An adult generally needs 1,095 days of physical presence in Canada in the five years before applying, plus other requirements.

CPP FOLLOWS YOU HOME

The Canada Pension Plan is based on your contributions while working. Moving does not erase them. CPP retirement benefits can be paid to you in Jamaica.

OAS AND THE 20-YEAR RULE

Old Age Security is different. It is based on residence in Canada after age 18. Ordinarily, to continue receiving OAS while living outside Canada, you need at least 20 years of Canadian residence after age 18.

You indicated that you have 18 years in Canada, but that does not necessarily mean you must remain here for another two years to have the benefit. Canada and Jamaica have a Social Security Agreement. Under that agreement, certain years you lived in Jamaica after age 18 may be added to your Canadian years to help you meet the 20-year requirement.

There is an important distinction. Your Jamaican years may help you qualify, but they do not increase the amount of OAS Canada pays you. Your Canadian OAS pension is calculated based on your qualifying years of residence in Canada.

I recommend that you contact Service Canada to confirm your Canadian residence record and how the Canada-Jamaica Social Security Agreement applies to you.

GIS STAYS IN CANADA

The Guaranteed Income Supplement is for low-income seniors living in Canada. It stops once you have been outside Canada for more than six months.

THE TAXMAN WANTS A GOODBYE

You must inform the Canada Revenue Agency when you leave. Report your departure date on your tax return for that year. Canada may treat you as having sold certain property at fair market value on departure. This is called departure tax. Canadian real property and RRSPs are among the exceptions.

Once you are a non-resident, your CPP and OAS may be subject to non-resident withholding tax. The rate depends on Canadian tax law and the tax treaty with Jamaica.

RETURNING RESIDENT CONCESSIONS IN JAMAICA

There is good news at the other end. A Jamaican national who is at least 18, has lived overseas for the last three consecutive years and is returning permanently may qualify for a one-time concession. It covers personal and household effects and tools of trade. Apply after you arrive, at the Jamaica Customs Agency’s Returning Residents Unit. Ship your goods within six months of your arrival.

A husband and wife returning together receive one concession. There is no duty exemption for motor vehicles. Returning residents must pay the applicable duties and taxes, although special rules allow them to import qualifying vehicles up to 10 years old.

SUMMARY

After 18 years, going home is more than packing barrels and booking a flight. You have built pension, tax and legal rights in Canada. Speak with Service Canada and an accountant before you finalise your plans. Keep a record of all your immigration, employment, tax returns, pension, and benefits. Know what you have before you leave so that what belongs to you is not left behind.

Deidre S. Powell, B.Sc., LL.B., LL.M., MCIArb, is a lawyer, mediator, and author in Canada. Contact her via www.deidrepowell.com or WhatsApp 613-695-8777.