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Inheritance Tax Canada: Understanding Canada's Tax SystemWhile Canada has no gift or inheritance tax, any potential tax on a foreign inheritance or gift will depend on the country it comes from. The truth is, there is no inheritance tax in Canada. Instead, after a person is deceased, a final tax return must be prepared on income they earned up to the. In addition, when a non-resident of Canada receives an inheritance, the executor will usually hold 25 per cent as a withholding tax before.
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