CRA Exit & Ongoing Filing Obligations for Canadians on E-2 Visas
Date: January 21, 2026, Category: Blog, Tax Filing
Canadians moving to the United States on an E-2 visa often assume their tax obligations to Canada end once they leave. In reality, the Canada Revenue Agency (CRA) imposes departure tax rules and ongoing filing obligations that must be handled correctly to avoid penalties, double taxation, and compliance issues.
This guide explains CRA exit tax and ongoing filing obligations for Canadians on E-2 visas, helping you remain compliant while managing cross-border tax accounting in the U.S. exposure.
CRA Residency Status for Canadians on E-2 Visas
Your Canadian tax obligations depend on whether the CRA considers you a resident or non-resident after moving to the United States.
CRA Residency Factors
- Residential ties such as a home, spouse, or dependents
- Economic ties including bank accounts and investments
- Social ties such as driver’s license and healthcare coverage
- Time spent in Canada
Holding an E-2 visa does not automatically result in non-resident status for CRA purposes. Residency must be properly supported and documented.
CRA Departure Tax (Exit Tax) for Canadians on E-2 Visas
When you become a non-resident, CRA may apply a departure tax, treating certain assets as if they were sold at fair market value on the date you left Canada.
Assets Commonly Subject to Exit Tax
- Non-registered investment accounts
- Shares of private corporations
- Cryptocurrency holdings
- Investment property outside Canada
Assets Generally Exempt
- Canadian real estate (taxed upon actual sale)
- RRSPs, RRIFs, and pensions
- TFSAs (with ongoing restrictions)
Incorrect exit tax reporting can result in substantial penalties and interest.
Required CRA Forms When Leaving Canada on an E-2 Visa
To formalize non-resident status, specific CRA forms must be filed with your departure return.
- Final Canadian T1 Return (Departure Return)
- Form T1161 – List of Properties by an Emigrant
- Form T1243 – Deemed Disposition of Property
- Form T1244 – Election to Defer Departure Tax
Missing or late filings frequently trigger CRA reviews and reassessments.
Ongoing CRA Filing Obligations After Becoming a Non-Resident
Even after becoming a non-resident, Canadians on E-2 visas may still have ongoing CRA reporting requirements.
- Canadian rental income reporting (Section 216 return)
- Withholding tax on Canadian-source income
- NR4 slips issued by Canadian payers
- Capital gains reporting on Canadian real estate
- RRSP withdrawals subject to withholding tax
CRA compliance changes after departure but does not end.
TFSA and RRSP Rules After Leaving Canada
TFSA Considerations
- No contributions allowed while non-resident
- Income may be taxable in the United States
- Penalties apply for excess contributions
RRSP Considerations
- RRSPs may be maintained as a non-resident
- Withdrawals subject to Canadian withholding tax
- U.S. tax reporting obligations still apply
U.S.–Canada Tax Treaty Impact for E-2 Visa Holders
The U.S.–Canada Tax Treaty helps prevent double taxation but must be applied correctly.
- Residency tie-breaker rules
- Withholding tax reductions
- Pension and RRSP taxation
- Foreign tax credit coordination
Improper treaty positions often result in CRA or IRS scrutiny.
Common CRA Mistakes by Canadians on E-2 Visas
- Assuming E-2 visa equals Canadian non-residency
- Failing to file departure tax forms
- Continuing TFSA contributions
- Ignoring Canadian rental income obligations
- Poor coordination between CRA and IRS filings
Final Thoughts: E-2 visa Accountant for Canadian Investors
CRA exit tax and ongoing filing obligations can significantly affect Canadians moving to the U.S. on an E-2 visa. Tax Planning Services for E-2 Visa , accurate filings, and coordinated cross-border tax strategies are essential to protect your assets and compliance status.
Need Help With CRA Exit Tax & Cross-Border Filing?
CPA for E-2 Visa can help you manage CRA departure tax, ongoing filings, and U.S. coordination with confidence. Schedule a free consultation at +1 832-848-5155.
Frequently Asked Questions
CRA departure tax is a deemed disposition of certain assets when you become a non-resident of Canada. Canadians on E-2 visas may owe departure tax on non-registered investments, private company shares, and other assets unless exemptions or deferral elections apply.
Yes, if foreign accounts exceed $10,000 at any time during the year.
No. TFSA contributions are not allowed while you are a non-resident of Canada. Continuing contributions can result in CRA penalties, and TFSA income may also be taxable in the United States.
The U.S.–Canada tax treaty helps prevent double taxation by applying residency tie-breaker rules, reducing withholding taxes, and coordinating foreign tax credits. However, treaty positions must be correctly applied and disclosed to avoid CRA or IRS scrutiny.
