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Nov 22, 2023 · This table displays the results of Tax-filing rates and long-term non-filing rates of permanent residents aged 25 to 64 at landing Filed an income tax return in the year of landing or the year after, Did not file an income tax return within at least 5 years since landing, Did not file an income tax return within at least 10 years since landing, 1993 to 1996, 1997 to 2000, 2001 to 2004, 2005 to ...
- Active presence of immigrants in Canada: Recent trends in tax ...
Table 1 Tax-filing rates among immigrants aged 25 to 54 at...
- Active presence of immigrants in Canada: Recent trends in tax ...
May 22, 2024 · Table 1 Tax-filing rates among immigrants aged 25 to 54 at landing, by landing cohort Table summary This table displays the results of Tax-filing rates among immigrants aged 25 to 54 at landing First full year after immigration, Fifth year after immigration, Tenth year after immigration, 1990 to 1994, 1995 to 1999, 2000 to 2004, 2005 to 2009, 2010 to 2014, 2015 to 2019 and 2020, calculated ...
Still, this study highlights a notable trend: an upward trajectory in immigrants’ active participation in Canadian society. Consistent increases in tax-filing rates and employment incidence across various arrival cohorts suggest that rising numbers of immigrants are integrating into and contributing to Canada’s economic landscape.
- Overview
- Find out if this pamphlet is for you
- Table of contents
- Before you start
- Who has to file a return
- Completing your return
- Tax treaties
- Digital services for individuals
- For more information
- Contact the CRA
T4055(E) Rev. 23
The CRA's publications and personalized correspondence are available in braille, large print, e-text and MP3. For more information, go to Order alternate formats for persons with disabilities or call 1-800-959-8281.
This pamphlet is for you if you left another country to settle in Canada in 2023.
This pamphlet will introduce you to the Canadian tax system and help you to complete your first income tax and benefit return as a resident of Canada.
If you are in Canada temporarily in 2023, this pamphlet does not apply to you. Instead, see Guide T4058, Non-Residents and Income Tax.
New items are flagged with NEW! throughout.
•Before you start
•Resident of Canada
•Canada's tax system
•Social insurance number
•GST/HST credit
•Climate action incentive payment
Resident of Canada
You become a resident of Canada for income tax purposes when you establish significant residential ties in Canada. You usually establish these ties on the date you arrive in Canada. Residential ties Residential ties in Canada include: a home in Canada a spouse or common-law partner or dependants who move to Canada to live with you personal property, such as a car or furniture social ties in Canada Other residential ties that may be relevant to determine your residency status include, but are not limited to, a Canadian driver's licence, Canadian bank accounts or credit cards and health insurance with a Canadian province or territory. Newcomers to Canada who have established residential ties with Canada may be: protected persons (including refugees) within the meaning of the Immigration and Refugee Protection Act individuals who have applied for or received permanent resident status from Immigration, Refugees and Citizenship Canada individuals who have received "approval-in-principle" from Immigration, Refugees and Citizenship Canada to stay in Canada If you were a resident of Canada in a previous year and you are now a non-resident, you will be considered a resident of Canada for income tax purposes when you move back to Canada and re-establish your residential ties. Get help determining your residency status If you are not sure if you are a resident of Canada for income tax purposes, complete Form NR74, Determination of Residency Status (Entering Canada). Send your form to the Canada Revenue Agency (CRA) as soon as possible to receive an opinion on your residency status before your return is due. For more information about residency status, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.
Canada's tax system
Canada’s tax system is similar to that of many countries. Employers and other payers usually deduct taxes from the income they pay you, whereas individuals with business or rental income usually pay their taxes by instalment. Many of the benefits people enjoy in Canada are made possible through taxes. Canada's tax system pays for roads, schools, health care, social security and public safety. Each year, you determine your tax obligation by completing an Income Tax and Benefit Return and sending it to the CRA. On the return, you: report your income and claim your deductions calculate your federal and provincial or territorial tax determine if you have a balance or a refund of all or part of the tax that was deducted from your income during the year For more information, see Who has to file a return. Under Canada's tax system, you have the right and responsibility to determine your income tax status and make sure you pay your required amount of tax each year according to the law. Guide RC17, Taxpayer Bill of Rights Guide: Understanding your Rights as a Taxpayer, outlines the fair treatment you are entitled to receive when you deal with the CRA. For more information, go to Taxpayer Bill of Rights. Other rights may apply under Canadian laws including the Canadian Charter of Rights and Freedoms. Compliance Each year, the CRA promotes compliance and taxpayer education through review programs. The CRA reviews deductions and credits on the Income Tax and Benefit Return and ensures that income amounts have been correctly reported. The CRA also reviews benefits and credits such as the Canada child benefit (CCB) and the goods and services tax/harmonized sales tax (GST/HST) credit. Keep all receipts and documents for at least six years after you file your return. If the CRA chooses to review your return, you will have to provide your receipts to support your claims. The underground economy The underground economy includes any activity not reported for income tax and GST/HST purposes. It is sometimes called "working under the table" and can include unreported or under-reported income from: tips and gratuities employment business money earned through the sharing economy such as renting out a room of your home or ride sharing gift cards received for work done cash payments for goods or services exchange of goods or services for other goods or services (bartering) without using money gifts received from suppliers (also called incentives) Generally, income you earn is taxable and has to be reported on your tax return, even when you do not receive a T4 slip and when the activity is not your main source of income. The CRA works to maintain the confidence of Canadians in the fairness and honesty of Canada’s tax system. As part of the efforts to fight the underground economy, the CRA works with the provinces and territories, private sector and other countries and regions to encourage compliance with Canada’s tax laws and ensure that those who do not comply have no unfair advantage over honest taxpayers. The CRA has developed a balanced approach to fighting the underground economy. This approach includes: audit activities that ensure that income and expenses are properly reported (an audit may lead to a reassessment of tax and the imposition of penalty and interest) education to increase awareness of the risks and consequences of participating in the underground economy Note A criminal investigation and prosecution may result if tax evasion is suspected; this could lead to fines and imprisonment. If you do not have permission to work in Canada because you cannot get a temporary social insurance number or work permit, you are working illegally in Canada.
Social insurance number
As a newcomer to Canada, you will need a social insurance number (SIN). The SIN is a nine-digit identification number that is unique, personal and confidential. The CRA uses your SIN to identify you for income tax and benefit purposes. You have to give your SIN to anyone who prepares tax information slips for you, such as a T4 slip. When you decide to become a permanent resident of Canada, you have to apply for a SIN with Service Canada if you are currently using any of the following: a temporary SIN (starting with the number 9) from Service Canada a temporary tax number (TTN) from the CRA an individual tax number (ITN) from the CRA Once this new SIN has been assigned to you, do not use any other SIN, TTN or ITN that was previously assigned to you. If you do not already have a SIN, you can apply online for one and upload your digital documents securely. You can also apply in person at the nearest Service Canada office or by mail. For more information, go to Service Canada or call 1-800-597-4732.
Even if you lived in Canada for only part of the year, you may have to file a 2023 Income Tax and Benefit Return if you:
•have to pay tax for the year
•want to claim a refund
•want to get benefit and credit payments
To continue getting the benefits and credits you may be entitled to, you have to do your taxes each year, even if you had no income.
The CRA uses the information from your return to calculate the CCB and related federal, provincial or territorial programs, GST/HST credit and related provincial and territorial credits and benefits, CAIP (depending on your province or territory of residence) and advanced Canada workers benefit (ACWB).
Identification and other information
The CRA needs your identification and other information to assess your tax return and calculate your GST/HST credit, CAIP (depending on your province or territory of residence), ACWB and any benefits you may be entitled to receive under the CCB. Residence information Enter the date that you became a resident of Canada for income tax purposes. For example, if you arrived in Canada and established significant residential ties on June 8, 2023, you will enter your date of entry on your return as "0608". If you requested a social insurance number (SIN) but have not yet received it and the deadline for filing your return is near, file your return without a SIN to avoid a possible late-filing penalty and interest charges. Attach a note to your paper return to let the CRA know why you did not enter your SIN. Note You will not be able to file online without a SIN. Your spouse's or common-law partner's information Their SIN Enter your spouse’s or common-law partner’s SIN if they have one. If not, leave it blank. Net income from line 23600 of their return to claim certain credits (even if the amount is "0") Enter your spouse’s or common-law partner’s net world income for 2023 regardless of their residency status. Net world income is the net income from all sources inside and outside Canada. In the space under this line, enter your spouse’s or common-law partner’s net world income for the period that you were a resident of Canada. If your marital status changes and you are entitled to receive the CCB, GST/HST credit or CAIP, you must tell the CRA by the end of the month following the month when your status changes. However, in the case of separation, do not notify the CRA until you have been separated for at least 90 days. To report a marital status change, call 1-800-387-1193 or send a completed Form RC65, Marital Status Change.
Income
Part of the year that you were a resident of Canada You have to report your world income (in Canadian dollars) for the part of the year that you were considered a resident of Canada. World income is income from all sources inside and outside Canada. In some cases, pension income from outside Canada may be exempt from tax in Canada due to a tax treaty, but you must still report the income on your return. You can deduct the exempt part of your income on line 25600 of your return. Part of the year that you were not a resident of Canada You have to report certain types of income that you earn in Canada. The most common types of income include: income from employment in Canada or from business carried on in Canada taxable capital gains from disposing of taxable Canadian property taxable part of scholarships, bursaries, fellowships and research grants that you received from Canadian sources Note Do not include any gain or loss from disposing of taxable Canadian property or any income or loss from business carried on in Canada if that gain or income would be exempt from tax in Canada under a tax treaty. For more information about the disposition of taxable Canadian property, see Guide T4058, Non-Residents and Income Tax. If you are a protected person (including a refugee) and you received funds from a charitable organization such as a church group or an individual during the part of the year that you were not a resident of Canada, you generally do not have to report the amounts on your return. However, if a charitable organization hired you as an employee, the employment income you received is taxable.
Deductions
You may be able to reduce your income by claiming deductions that you may qualify for. The following deductions are some of the most common. Registered retirement savings plan contributions Generally, you cannot deduct contributions that you made to a registered retirement savings plan (RRSP) in 2023 if it is the first year that you will be filing a return in Canada. If you filed a return in Canada for any tax year from 1990 to 2022, you may be able to claim a deduction for RRSP contributions that you made in Canada for 2023. The CRA determines the maximum amount you can deduct based on certain types of income you earned in previous years. You can view your RRSP deduction limit online using My Account for Individuals or on the MyCRA mobile app. For more information, see Guide T4040, RRSPs and Other Registered Plans for Retirement. Pension income splitting If you and your spouse or common-law partner were residents of Canada on December 31, 2023, you can elect to split pension income that qualifies for the pension income amount (line 31400 of your return). To make this election, you and your spouse or common-law partner must complete and attach Form T1032, Joint Election to Split Pension Income, to your returns. NEW! First home savings account The first home savings account (FHSA) is a new registered plan to help individuals save for their first home. Contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to purchase a qualifying home are tax-free. For more information about the FHSA, go to First Home Savings Account. Moving expenses Generally, you cannot deduct moving expenses incurred to move to Canada. However, there is an exception for individuals who came to Canada as full-time students enrolled in a post-secondary program at a university, college or other educational institution and received a taxable Canadian scholarship, bursary, fellowship or research grant for that educational institution. If you meet these criteria, you may be eligible to deduct your moving expenses. You cannot deduct moving expenses if your only income at the new location is scholarship, fellowship or bursary income that is entirely exempt from tax. For more information, see Form T1-M, Moving Expenses Deduction. Support payments If you make spousal or child support payments, you may be able to deduct the amounts that you paid, even if your former spouse or common-law partner does not live in Canada. For more information, see Guide P102, Support Payments. Treaty-exempt income Once you become a resident of Canada, you have to report your world income. World income is income from all sources inside and outside Canada. However, all or part of the income may be exempt from Canadian tax. This may be the case if Canada has a tax treaty with the country or region where you earned the income and there is a provision in the treaty preventing Canada from taxing the type of income that you received. You can deduct the exempt part of the income on line 25600 of your return. For a list of countries and regions that Canada has a tax treaty with, see Tax treaties. If you are not sure if the applicable tax treaty contains a provision that makes your income from sources outside Canada exempt from tax in Canada, contact the CRA. Other deductions You may be able to claim other deductions. For more information, see the income tax package for the province or territory where you resided on December 31, 2023.
Canada has income tax conventions or agreements (commonly called tax treaties) with the countries and regions listed in this section. These tax treaties are designed to avoid double taxation for those who would otherwise have to pay tax in Canada and another country or region on the same income.
Generally, tax treaties determine how much each country or region can tax your income. For more information about tax treaties, go to Tax treaties.
•Algeria
•Argentina
•Armenia
•Australia
My Account
My Account lets you view and manage your personal income tax and benefit information online. Use My Account throughout the year to: view your benefit and credit information and apply for certain benefits view your notice of assessment or reassessment view uncashed cheques and request a replacement payment change your address, phone numbers, direct deposit information, marital status and information about children in your care manage notification preferences and receive email notifications when important changes are made to your account check your tax-free savings account (TFSA) contribution room, your registered retirement savings plan (RRSP) deduction limit and your first home savings account (FHSA) participation room track the progress of certain files you have submitted to the CRA make a payment online to the CRA with the My Payment service, create a pre-authorized debit (PAD) agreement or create a QR code to pay in person at Canada Post for a fee (for more information on how to make a payment, go to Payments to the CRA) view and print your proof of income statement manage authorized representatives and authorization requests submit documents to the CRA submit an audit enquiry link between your CRA My Account and Employment and Social Development Canada (ESDC) My Service Canada Account manage multi-factor authentication settings To sign in to or register for the CRA’s digital services, go to: My Account, at My Account for Individuals, if you are an individual Represent a Client, at Represent a Client, if you are an authorized representative. Receive your CRA mail online Set your correspondence preference to "Electronic mail" to receive email notifications when CRA mail, like your notice of assessment, is available in your account. For more information, go to Email notifications from the CRA – Individuals.
MyBenefits CRA mobile web application
Get your benefit information on the go! Benefit recipients can access the MyBenefits CRA mobile web application throughout the year to quickly view their benefit and credit payment details, eligibility information and application status. For more information, go to Mobile apps – Canada Revenue Agency.
Electronic payments
Make your payment using: your Canadian financial institution's online or telephone banking services the CRA's My Payment service at Pay now with My Payment your credit card, Interac e-transfer or PayPal through one of the CRA's third-party service providers pre-authorized debit (PAD) at My Account for Individuals For more information, go to Payments to the CRA.
If you need help
If you need more information after reading this pamphlet, go to Taxes or contact the CRA.
Due dates
When a due date falls on a Saturday, Sunday or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day. For more information, go to Due dates and payment dates.
Cancel or waive penalties and interest
The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA the discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control. The CRA’s discretion to grant relief is limited to any period that ends within 10 calendar years before the year in which a relief request is made. For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to a penalty for a tax year or fiscal period ending in 2013 or later. For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to interest that accrued in 2013 or later. Taxpayer relief requests can be made online using the CRA’s My Account, My Business Account (MyBA), or Represent a Client digital services. You can also fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties and Interest, and send it to the CRA online using My Account, MyBA or Represent a Client, or by mail to the designated office shown on the last page of Form RC4288. For information about how to submit documents online, go to Submit documents online. For details about the required supporting documents, relief from penalties and interest, and other related forms and publications, go to Cancel or waive penalties and interest at the CRA.
By telephone
Calls from Canada and the United States............................. 1-800-959-8281 Hours of service Monday to Friday (except holidays) 8 am to 8 pm (local time) Saturdays (except holidays) 9 am to 5 pm (local time) Calls from outside Canada and the United States............... 613-940-8495 The CRA only accepts collect calls made through a telephone operator. After your call is accepted by an automated response, you may hear a beep and notice a normal connection delay. Hours of service Monday to Friday (except holidays) 8 am to 8 pm (Eastern Standard Time) Saturdays (except holidays) 9 am to 5 pm (Eastern Standard Time)
The goods and services tax/harmonized sales tax (GST/HST) credit helps you offset the tax you pay on things you buy. If you are at least 19 years old, have a low or modest income, and are eligible, apply for a tax-free quarterly payment. Find out if you are eligible to apply for the GST/HST credit. The Canada Carbon Rebate (formerly known as ...
Mar 13, 2024 · By filing and paying on time, you’ll avoid late-filing penalties and interest. When you file your tax return, you could reduce the amount of tax you owe by claiming deductions, credits, and expenses. If you or your spouse or common-law partner are self-employed, you have until June 15, 2024, to file on time.
People also ask
When did immigrants file taxes in Canada?
How often do immigrants file taxes in Canada?
When do immigrants file income tax returns?
Why do immigrants file taxes in Canada?
Do new immigrants file taxes?
What percentage of immigrants file tax returns in the first year?
Statistics Canada, issuing body. Title : Tax-filing rates of newly landed immigrants in Canada : trends and insights / by Tahsin Mehdi, Ying Gai, Ping Ching Winnie Chan, René Morissette, Jason Raymond, Rubab Arim and Dylan Saunders. Series title : Economic and social reports, 2563-8955 ; v. 3, no. 11, November 2023 : Publication type
