New Immigrant Tax Filing
Residency and Tax Obligations
In Canada, taxation is based on residency, not citizenship. Once you establish significant residential ties (e.g., a home, spouse/children in Canada), you are considered a resident for tax purposes. New immigrants need to file taxes for the part of the year they lived in Canada and report their worldwide income from their arrival date.
Foreign Assets: Form T1135
If you own foreign property (like bank accounts, stocks, or real estate) with a total cost exceeding CAD $100,000, you must file Form T1135 – Foreign Income Verification Statement annually. This form helps the Canada Revenue Agency (CRA) ensure proper reporting of foreign income.
Note:
New immigrants do not need to file Form T1135 in their first year of residency, but the reporting applies for subsequent years.
Important Forms to Know
Form RC151 – GST/HST Credit Application:
Form RC66 – Canada Child Benefit (CCB):
- Permanent residents with children can apply for the CCB right away.
- Temporary residents must wait 18 months to be eligible, provided they meet other residency requirements.
Tip: The Canada Child Benefit is a tax-free monthly payment that helps parents cover the cost of raising children under 18.
Carbon Rebate:
Residents can use Form RC151 to receive the Climate Action Incentive Payment (CAIP), a rebate designed to offset carbon pricing.
Steps for New Immigrants to File Taxes
- Obtain a Social Insurance Number (SIN):
- Report Worldwide Income:
From your date of entry into Canada, declare all income earned globally.
- Claim Deductions and Credits:
You may be eligible for credits like the GST/HST credit, basic personal amount, and medical expenses.
- Understand Foreign Property Reporting:
For subsequent years, ensure you file Form T1135 if required.
Key Benefits for Newcomers
Canada Child Benefit (CCB):
GST/HST Credit:
Climate Action Incentive Payment (CAIP):
Final Tips
-
File on Time: The tax filing deadline is April 30th for most individuals.
-
Seek Help: Consult tax professionals for complex scenarios, especially if you have foreign income or assets.
FAQs About New Immigrant Tax Filing in Canada
If you miss the April 30th deadline, you may face interest and penalties on any taxes you owe. Even if you don’t owe taxes, late filing could delay your GST/HST credits, CCB payments, or other tax refunds. File as soon as possible to minimize penalties.
Yes, as a resident of Canada, you are required to report worldwide income, including rental income, dividends, or interest earned from property or investments outside Canada. Ensure you declare this income on your tax return to avoid penalties.
No, moving expenses related to your immigration to Canada cannot be claimed on your tax return. Moving expenses are only deductible for specific cases, such as students moving for full-time education or residents moving within Canada for work purposes.
Need Help Filing Your Taxes?
At Qualivests, we help you with all the above needs, ensuring you file your taxes accurately, maximize your benefits, and comply with Canadian tax regulations. Let us make your first tax-filing experience in Canada simple and stress-free!