If you are a permanent resident and your income falls within the taxable scale, I guess you should be paying and getting your deductions as well. There are local retirees that have to pay income tax on their pensions. What to do, depends on a bigger picture ( ie: are you using foreign credit cards, do you own property, are you planning to return to your home country ) You might want to talk to an accountant to see what is the most convenient way to go.