If you are an international student studying in Canada, you may have to file a Canadian income tax return. You must determine your residency status to know how you will be taxed in Canada.
For income tax purposes, international students studying in Canada are considered to be one of the following types of residents:
Residency status is based on the residential ties you have with Canada.
What are residential ties
Residential ties include:
Other residential ties that may be relevant include:
Determining your residency status
In general, you probably have not established significant residential ties with Canada if you:
However, many international students who study or carry-on research in Canada do establish significant residential ties with Canada.
Your tax obligations
Canada’s tax system is like that of many countries. Employers deduct taxes from the income they pay you, and people with business or rental income are required to pay their taxes by installments.
Your residency status determines your income tax return filing requirements in Canada:
Should you file or not?
Canada Tax Return is called “Tax and Benefit Return”. So, filing taxes would determine your eligibility to claim benefits even though your income is non-taxable or NIL. You may also file to carry forward your unused amounts/ credits to future years.
Common credits that any taxpayer or an international student are eligible for include:
Find Out More
This article includes a general summary of tax rules. Need specific tax advice? Hire a Professional Accountant and get the best working for you.
Filing Taxes concisely deals with several complex issues; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Our experienced and professional team at Filing Taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.