Tax Information for New Immigrants to Canada
Taxes and New Immigrants to Canada
Let me start this blog off with a disclaimer: We are immigration lawyers not accountants nor tax lawyers. Therefore the following information is general information only and is not to be taken as legal or accounting advice. Having said that, as immigration lawyers, we are asked all the time about tax. So I thought it would be a good idea to provide some basic information about tax issues for new immigrants to Canada. Enjoy!
Along with our different culture, climate, and a slew of other new and exciting challenges, taxes are one more thing new residents to Canada must face now that the 2009 tax year is almost at its end. Many services that are available to Canadians are provided from tax revenue including health care, law enforcement, public utilities and schools. It is up to Canadian residents to ensure they are responsible in reporting their income each and every year. Taxes can be filed through tax preparation companies and accountants or through the mail, and you can find Canadian tax form booklets at any post office or Canada Revenue Office or by calling 1-800-959-2221. Currently, new Canadians are unable to file taxes using the online system.
Since tax regimes differ immensely from nation to nation, here are some things to be aware of as a new immigrants to Canada:
As a newcomer to Canada you will need a Social Insurance Number (SIN). Your SIN is a unique identification number typically used for government and employment purposes. A SIN can be applied for at any Service Canada office.
Canadian income taxes for new immigrants
Residents of Canada are taxed on all of the income they receive, no matter where across the globe it comes from. If you only live in Canada for part of the year, any other income must be reported on your Canadian income tax return. Any investors creating income for you in an originating country may have to be told of your Canadian residency status. As of 1999, any income from these properties must be reported on your Canadian tax return. While this applies to everyone, new Canadians are far more likely to have investment properties in other countries.
Most expenses incurred as a result of your move to Canada are not tax deductible, unless they can be deducted because you are a student and against scholarships or research grants you have received. Otherwise, these moves are typically considered personal expenses.
New residents will be able to receive the GST credit. Based on your income, the GST credit is a small refund that is given quarterly. You can sign up to receive it if you are eligible when you file your taxes for the year (FORM RC151). A Canada Child Tax Benefit Application (Form RC66) should be completed as soon as possible after you arrive if you have children as you may qualify for these benefits.
Preparation and further research or consultation with tax specialists are the best bets for a new Canadian when it comes to dealing with the Canadian tax system and avoiding financially-destructive surprises.
The content and comments of this blog are not legal advise and and may not be accurate or complete. If you require legal advice, contact a licensed legal practitioner directly. If you post on this blog, you assume full responsibility for disclosing your identity to the public and VisaPlace nor its affiliates are not responsible for protecting your privacy nor your identity concerning your participation in our blog and you assume any risks in participating.
I hired them for my study permit application! I had been denied twice and thanks to them the 3rd try was a success. Lisa Inspektor was my main contact. She is Very nice and polite. I strongly recommend you to go with them! The money you’re gonna spend is gonna be worth it
I had an excellent experience working with Visa Place, communicating with them was very easy. I initially tried to navigate my immigration issue personally, but it was much more efficient allowing everything to be handled by the experts. Thank you so much Sarah, Lauren, Natasha, and Sukhi for all of your help!
Thanks to Alicea and Rania for their excellent service. This is the 2 nd time we are using them and they have always delivered successful results, even where other law firms has been unsuccessful. Alicea has been especially helpful and available to address all our concerns. She has an excellent work ethic. We will be using them again and always recommend them to our friends.