Lisa Book Keeping
|Posted on 20 June, 2014 at 18:45|
One of my friends asked me about Canadian tax system, I put this information here to share with you and any those who wants to know.
Canada tax system
As a resident of Canada for income tax purposes for part or all of a tax year (January 1 to December 31),special for the newcomer, which is their first tax year in Canada, you must file a tax return if you:
• owe tax; or
• want to claim a refund.
What income must you report?
If you were NOT a resident of Canada
You pay Canadian income tax on Canadian source income.
You have to report the following amounts:
• income from employment in Canada or from a business carried on in Canada;
• taxable capital gains from disposing of taxable Canadian property; and
• the taxable part of scholarships, bursaries, fellowships and research grants you received from Canadian sources.
If you WERE a resident of Canada
You have to report your world income (income from all sources, both inside and outside Canada) earned after becoming a resident of Canada for income tax purposes on your Canadian tax return. In some cases, pension income from outside of Canada may be exempt from tax in Canada due to a tax treaty, but you must still report the income on your tax return. You can deduct the exempt part on line 256 of your tax return.
For residential ties, please link to: http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html