Canadian Tax – 10 points for New Immigrant

Taxation System of Canada for New Immigrants

  1. Canada has a progressive system of taxation which means that the more income you earn, the higher your tax rate.
  2. As a new immigrant to Canada, you will be required to pay taxes based on the same rules and regulations as Canadian citizens.
  3. All income earned in Canada is subject to taxation, regardless of your residency status.
  4. Personal income tax is collected on a yearly basis. This is done using a tax return, which is a form to calculate your total income and deductions, and to calculate your taxes owing.
  5. Canada has two different levels of taxation: federal and provincial. Federal taxes are collected by the Canada Revenue Agency (CRA) and provincial taxes are collected by the province in which you live.
  6. As a new immigrant, you may be eligible for certain tax credits or deductions. It is important to check with the CRA to see what deductions or credits may be available to you.
  7. If you are self-employed, you will need to register for a business number with the CRA, which will allow you to pay taxes on your business income.
  8. Goods and services tax (GST) and harmonized sales tax (HST) are also collected in Canada. These taxes are charged on certain goods and services, and are collected by the CRA.
  9. As an immigrant, you will be eligible to claim a certain amount of GST/HST credits each year.
  10. Finally, it is important to keep track of your income and expenses throughout the year, as this will help you in filing your taxes. The CRA provides a variety of resources to help you understand and file your taxes.

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