"Astronaut" Families: One Spouse in Canada, One in China

How to file when spouses have different residency status, and the effect on benefits and residency

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

The wife and children live in Toronto, while the husband runs a business in China and flies over several times a year — this is what's often called an "astronaut" family. Many husbands assume that because they live in China, they aren't Canadian residents. But in the CRA's view, a spouse, children and a home in Canada are all three significant residential ties, so the husband is quite likely a Canadian tax resident and must report his worldwide income.

3 significant ties

A home, a spouse and dependent children, all in Canada

Quite likely a resident

The spouse living in China may still be found to be a Canadian resident

Worldwide income

A resident must report salary and business income from China

Treaty tie-breaker

If China also treats you as a resident, the Canada–China treaty assigns you to one country

Which country is the husband a resident of?

Canada's view

Wife and children are in Canada

The family home is in Canada

He may be a factual resident of Canada under Canadian law; the treaty is then applied

Where he spends more time is not the only factor

China's view

If he is domiciled in China, the number of days doesn't matter

If he isn't domiciled there, it depends on whether he stays a total of 183 days or more in the year

China may also treat him as a resident

If both countries count him as a resident, the treaty decides

The treaty tie-breaker: permanent home → centre of vital interests (family, economic interests) → habitual abode → nationality. If he has a home in both countries, where the family lives is often the key; but if his business and assets are all in China, the answer isn't certain. The result has major consequences, so it should be backed by a written analysis.

Two outcomes, completely different filing

Item	The husband is a Canadian resident	The treaty assigns the husband to China
What he reports in Canada	Worldwide income: salary, dividends and business income from China	Only Canadian-source income (Canada treats him as a deemed non-resident)
Tax paid in China	Can be credited against Canadian tax	Handled under Chinese rules
Foreign assets	Over C$100,000, file the T1135; for companies that meet the definition of a foreign affiliate, consider the T1134	Generally not required
Family benefits	His worldwide income counts in family income	His worldwide income must still be reported to the CRA for benefits

The effect on family benefits

The CCB is based on family income
Whether or not the husband is a Canadian resident, his worldwide income counts in family net income. If it isn't reported or is under-reported, benefits will stop or be recovered.
A spouse who doesn't file must have their income reported separately
If the husband doesn't file in Canada, the wife must report his income separately each year.
A high income affects benefits
If the husband earns a high income in China, the CCB may be small. That is no reason to under-report.

Points to watch

The most common risk
The husband hasn't filed in Canada for years and is later found to be a Canadian resident. He then has to file the missing years of worldwide income, plus the T1135 and T1134.
Keep a record of entries and exits
Keep proof of how many days you spend in each country each year and of your family's situation.
Companies in China
If the husband is a Canadian resident, his company in China may be a foreign affiliate, and its passive income may be taxable in Canada each year; see "Shares in a Foreign Company: When Do You File the T1134?" in the Cross-Border Tax series.
Things change
When the children leave home for university or the wife moves back to China, residency status may change too, so review it every year.

How Sheng Qian CPA can help

Residency status first
Based on family, home, business and days, we assess the husband's status in Canada and under the treaty, and set it out in a written analysis.
The whole family's returns planned together
The wife's, husband's and children's returns and benefits are all prepared on the same conclusion.
Past years not filed
We first assess the risk, then consider whether to file the missing returns or make a voluntary disclosure. For prices, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

CRA: Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status
CRA: Canada child benefit
China's Ministry of Foreign Affairs: Canada–China agreement for the avoidance of double taxation (English text)

Disclaimer

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