12 replies to this topic

[spexmex]

I own a Mexican plated car and would like to drive it to Canada this spring when I return to work. Does anybody know the legalities of this? I have an FM3 and plan on getting my Jalisco driver's licence. Will I be taxed at the border for "importing" a car or will I be able to claim that I am a non-resident and just drive through? Will I have to apply for non-resident status before I head north? Any help with this would be appreciated.

[cosalamx]

I own a Mexican plated car and would like to drive it to Canada this spring when I return to work. Does anybody know the legalities of this? I have an FM3 and plan on getting my Jalisco driver's licence. Will I be taxed at the border for "importing" a car or will I be able to claim that I am a non-resident and just drive through? Will I have to apply for non-resident status before I head north? Any help with this would be appreciated.

When you return to work in Canada, if you are only in Canada temporarily, you MAY be a non-resident, if you are a non-resident now, as opposed to simply being outside Canada. At the very least you should have an FM-3 and a Mexican drivers license. As long as you are a non-resident, you can operate a Mexican-plated car in Canada, and you can drive it into Canada with no problems. We have done it often. However, as soon as you are a resident of Canada (which is determined by the government, not by you, based on several factors), it is illegal for you to keep the car in Canada, and, if the car was manufactured for sale in Mexico, in all likelihood, it will be impossible to import it into Canada. Also, the insurance that you obtain for liability coverage NOB will contain a provision that it becomes void should you become a resident of Canada or the USA.

At the border, as long as you have some documentation supporting your claim to be a non-resident you will be allowed into Canada without problems, but that only addresses the question of whether you will be required to pay taxes at the border. As mentioned above, in all likelihood the car would not be eligible for importation, so you would not be allowed to drive the car into Canada, if you told the officials that you wanted to import the car. There are notice requirements for such importation, and several steps to follow prior to arrival at the border, including ensuring that the car is eligible for importation.

With the insurance issues and other concerns, I would not recommend trying to slip something past anyone, since the repercussions could far outweigh any possible convenience or savings of money. It may be far-fetched, but you could be considered to have smuggled the car into Canada and be subject to criminal prosecution, fines and penalties, plus if you had a serious accident and your insurance was denied, you could face significant financial obligations. The safest route would be to ask the Canadian government and the insurance company, in advance, whether you qualify as a non-resident for these purposes.

[spexmex]

Thank you for the reply. I consider myself a non-resident of Canada since I have no ties there anymore( the gov't might think differently,I know). I live here and just work for 4 to 5 months a year up there. I have written the government but have had no reply so far. Again , thanks for your advice.

[BarbaraJo]

Thank you for the reply. I consider myself a non-resident of Canada since I have no ties there anymore( the gov't might think differently,I know). I live here and just work for 4 to 5 months a year up there. I have written the government but have had no reply so far. Again , thanks for your advice.

Spexmex, I do not know about the Canadian law, but from the US if you are working there 4 or 5 months, would not that indicate you have ties? In the US they do not answers your questions by mail. A friend of mine could not drive her Mexican plated car into BC, and she is retired!!

[cosalamx]

Spexmex, I do not know about the Canadian law, but from the US if you are working there 4 or 5 months, would not that indicate you have ties? In the US they do not answers your questions by mail. A friend of mine could not drive her Mexican plated car into BC, and she is retired!!

For the past 8 years I have driven my foreign-plated cars (first, Texas, and for the past two years, Jalisco plates) into Canada, and I am in Canada presently driving my Jalisco plated car. I am a non-resident Canadian citizen and have never had a problem at the border entering Canada.

Working in Canada for 4 or 5 months does likely not make you a resident, but a definitive confirmation from the government would certainly be valuable. It is definitely possible to receive such a ruling by mail from Canada.

[spexmex]

For the past 8 years I have driven my foreign-plated cars (first, Texas, and for the past two years, Jalisco plates) into Canada, and I am in Canada presently driving my Jalisco plated car. I am a non-resident Canadian citizen and have never had a problem at the border entering Canada.

Working in Canada for 4 or 5 months does likely not make you a resident, but a definitive confirmation from the government would certainly be valuable. It is definitely possible to receive such a ruling by mail from Canada.

Did you have to apply for non residency before heading north? If so, where would I find the forms?

[spexmex]

For the past 8 years I have driven my foreign-plated cars (first, Texas, and for the past two years, Jalisco plates) into Canada, and I am in Canada presently driving my Jalisco plated car. I am a non-resident Canadian citizen and have never had a problem at the border entering Canada.

Working in Canada for 4 or 5 months does likely not make you a resident, but a definitive confirmation from the government would certainly be valuable. It is definitely possible to receive such a ruling by mail from Canada.

One more thing. If deemed a non resident, what , if any , taxes would I have to pay in Canada? Going to the gov't sites , well, it's just confusing!

[cosalamx]

Did you have to apply for non residency before heading north? If so, where would I find the forms?

Search the Government of Canada website using keywords like "acquiring non-resident status"

[elainem]

Did you have to apply for non residency before heading north? If so, where would I find the forms?

Search the Revenue Canada website for the NR73 form. We printed it off, filled it out and faxed it in early January and are still waiting for a reply . . .

[seewee]

One more thing. If deemed a non resident, what , if any , taxes would I have to pay in Canada? Going to the gov't sites , well, it's just confusing!

We cut off all ties with Canada bit by bit (except bank account for our pensions to go in). Then we called Canada Revenue International and asked them to consider us as non-residents. They have asked many questions and that was it. We had to advise our pension and investments company to change our address for Mexico and they started to withhold 15% taxes on our revenues.

We also file a form to claim the taxes back on our pensions.

[kvisser]

I am living in Mexico currently, i managed to buy a little motorcycle under my name and get plates in my name with just my Canadian License and just a regular 6 month visitors visa. I am toying around with the idea buying a older vehicle here (not a VW bug) and driving/importing it to Canada. Can this be done? Any help is appreciated,

Thank you,

Kevin

[Ajijic]

Kevin cars sold in Mexico are almost never allowed to be imported into Canada. Safety and emissions are usually different. I am 99% sure you could never do this.

If you want a Canadian registered car to drive to and keep in Canada there are some available here in Mexico.

[BobC]

For a non-resident, which it sounds like you are, only Canadian-sourced income is taxable and, for a resident of Mexico, that would be at the rate of 15%. Withholding that would be the responsibility of your employer. How, exactly, that would be remitted, is another question. Presumably, their accountant would be able to advise them. I'm sure it wouldn't be exactly the same as for a Canadian resident.

How it is done if you are self-employed, I don't know. When I was working, we used to occasionally bring in Americans to speak to seminars and courses. We were not their "employer" per se but we were still responsible for collecting and remitting the 15% on their fees.

They would then be able to credit that money towards their US taxes paid under the terms of the tax treaty. If you wanted to be squeaky-clean, I would think the same would apply in Mexico--that is, you would have to report the income to Mexican authorities, but would get credit for the taxes paid in Canada. But Mexican tax law may be different.

It certainly does sound like a situation where you need some professional advice or at least some information from the Canadian government. Maybe the consulate in Guadalajara can help.