Spending Several Months a Year in China: Does It Affect Your Canadian Tax Residency?

How residential ties are assessed, and the risks of a long absence

Scott Tang, CPAUpdated 2026-11-052026 rules5 min read

Every year you go back to China to spend time with your parents or look after business, and stay for several months at a time — this alone generally won't cost you your Canadian tax residency. Canada looks mainly at your residential ties here, as well as any applicable day-count rules and the treaty. What you really need to watch is the Chinese side: if you stay long enough, China may also treat you as a tax resident, and both countries would then require you to report your worldwide income.

Not just days

Residential ties come first, but the 183-day deemed residence rule and the treaty also matter

183 days

If you live in China for 183 days or more in a tax year, China generally treats you as a resident

Treaty tie-breaker

If you are a resident of both, the Canada–China tax treaty's tests, applied in order, assign you to one country

153 days

OHIP generally requires you to be in Ontario for at least 153 days in any 12-month period, along with other conditions such as Ontario being your primary place of residence (this is not a tax rule)

What Canada looks at

Residential tie	Significant ties one alone carries a lot of weight	Secondary ties considered together
A home in Canada (owned or on a long-term lease)	✓	—
Spouse or common-law partner in Canada	✓	—
Dependent children in Canada	✓	—
Canadian bank accounts, credit cards, investments	—	✓
Driver's licence, provincial health insurance, a vehicle	—	✓
Work, a business or memberships in Canada	—	✓

A home in Canada (owned or on a long-term lease)

🏠 Significant ties: ✓
🔗 Secondary ties: —

Spouse or common-law partner in Canada

🏠 Significant ties: ✓
🔗 Secondary ties: —

Dependent children in Canada

🏠 Significant ties: ✓
🔗 Secondary ties: —

Canadian bank accounts, credit cards, investments

🏠 Significant ties: —
🔗 Secondary ties: ✓

Driver's licence, provincial health insurance, a vehicle

🏠 Significant ties: —
🔗 Secondary ties: ✓

Work, a business or memberships in Canada

🏠 Significant ties: —
🔗 Secondary ties: ✓

If your home and family are still in Canada, a few months in China generally leaves you a Canadian resident. Only if all these ties are cut and you live abroad long-term might you stop being a Canadian resident — that is a different set of rules; see "You've Left Canada: Could the CRA Still Treat You as a Resident?" in the Changing Tax Residency series.

What China looks at

No "domicile" in China

Based on days

183 days or more in a tax year makes you a Chinese resident

Some tax relief for income from outside China

Conditions such as the number of consecutive years and single absences of more than 30 days follow Chinese rules

A "domicile" in China

Household registration (hukou), family and economic interests in China, and you habitually live there

May be a Chinese resident regardless of the number of days

China may require you to report your worldwide income

Take particular care if you have kept your hukou or have family in China

If both countries treat you as a resident, the Canada–China tax treaty settles it in this order: permanent home → centre of vital interests → habitual abode → nationality → mutual agreement. Whichever country you are assigned to, the other generally treats you as a non-resident. See "What Does the Canada–China Tax Treaty Cover?" in this series.

Different patterns of time in China, different results

Item	A few months in China each year, home in CanadaRecommended	Living in China long-term, only occasionally back in Canada
Canadian status	Generally still a Canadian resident	May no longer be a Canadian resident (depends on whether your ties are cut)
Chinese status	Without a domicile, the 183-day test applies; with a domicile, days alone don't decide it; if you are a resident of both, the treaty decides	Very likely a Chinese resident
How to file	Worldwide income reported in Canada; in China, follow local rules	You may need to deal with leaving Canada; in Canada, report only Canadian-source income

Points to watch

Keep a record of travel dates
Track how many days you spend in China and in Canada each year, and keep your passports and air tickets; you'll need them if either country asks.
Non-tax rules matter too
OHIP, your immigration status (permanent residents need 730 days in Canada within 5 years), the Canada Child Benefit and the Canada Groceries and Essentials Benefit (CGEB, formerly the GST/HST credit) all have residence requirements, and the rules differ.
Work done in China
China may be able to tax wages for work you do for a Chinese company while you are there; you still report them in Canada and can claim a credit.
Plan early if you intend to stay long-term
If you are getting ready to live in China long-term, plan the timing of your departure from Canada and how to deal with your assets in advance.

How Sheng Qian CPA can help

Determining your status first
Based on your homes, family, work and days in each country, we assess your residence status under Canadian law and the treaty.
Keeping the two countries' filings apart
We handle your Canadian tax return and credits; a local adviser handles the Chinese side.
Planning before a long stay
If you plan to move back to China long-term, we work out the timing of your departure from Canada and your asset arrangements in advance; for fees, see "What Sheng Qian CPA Can Do for Cross-Border Families: From Tax Returns to Foreign Asset Reporting" in this series.

Sources

CRA: Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status · Factual residents – temporarily outside of Canada
China's Ministry of Foreign Affairs: Canada–China agreement for the avoidance of double taxation (English text)
Ontario: OHIP eligibility

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements, and a qualified local adviser about Chinese tax matters. Service fees are as set out in our written quote.