New Comers to file Canadian Income Tax

New Comers to file Canadian Income Tax

Welcome to Canada! As one of many new comers to arrive in Canada, it may seem daunting at times. The new landscape, new people, new languages and many other firsts. There are a few things we’d like to share with you about Canada. We have universal health care, cold winter weather with snow, hockey is our National sport and Canadian Maple Syrup is yummy! We also do our income tax returns every year.

There may be challenges ahead of you but your taxes should not be one of them. Our team at Mak Tax can support and navigate this for you. Our experts have 30+ years of experience doing taxes and up-to-date with all changes and regulations set forth by the Canadian government.

Your tax obligations are based on your residency, not citizenship. Also, you need to obtain a Social Insurance Number (SIN), which you can obtain from a Service Canada centre. This SIN card is needed so you can file your return to get the benefits and credits as offered federally and provincially. There are many tax credits and deductions and each person’s situation is unique to them.

– GST/HST credits: this payment arrives quarterly with each installment arriving within the first 2 weeks of January, April, July and October.

– Canadian children: new residents with children under the age of 18, may qualify for the Canada Child Benefit (CCB). This benefit is a tax-free monthly payment for families to help with raising their children and starting a new life in Canada. The payment amount is based on age of the child and the income of the family unit.

– Another home outside of Canada: Canada requires you to claim/report all income earned from anywhere in the world, when filing your taxes. There are times when income from another country is exempt from Canadian tax or subject to special tax treatment if Canada has a tax treaty with the country which income was earned. Currently, Canada has tax treaties with nearly 100 different countries.

– Calling Canada Home: New Canadians may qualify for “First time home buyers Tax Credit” on their first home in Canada. This is a tax credit of up to $10,000 which equates to $1,500 refund. This can help offset costs associated with moving to a new country. You may not qualify for this amount if you have owned a home in 5 years prior to this year, regardless if this home was in Canada or not.

– Tax Filing deadlines: The tax year in Canada is per-calendar year, January to December. Usually the personal tax return deadline is April 30th however this year it falls on a Sunday, therefore it will be May 1st, 2023. Those who are self-employed file-by date is June 15th, 2023.

As you make your place in Canada and move forward building a new life in this beautiful country, know that the Mak Tax family is here to help and support you along this journey.

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