As a Canadian, if I retire and move to another country, will I be taxed in Canada on my pension income?
If you are a citizen of another country, you might be subject to a non-resident tax which means that unless you live in a country that shares a tax treaty with Canada, your CPP/QPP and OAS benefit pension will receive a 25% tax rate. This tax rate is subtracted from your monthly allowance.
Suppose you live in a country that doesn’t have a tax treaty with Canada, and you need your taxes lowered or exempt. In that case, you should complete the Application by a Non-Resident of Canada for the Reduction in the Amount of Non-Resident Tax Needed to be Withheld (NR5).
This Application needs to be renewed every five years, and a new one to be presented with each following pension. If you reside in a country with a tax treaty with Canada, you don’t need to request an exemption since it will be done automatically.