Filing taxes in Canada

In Canada, income tax is administered by the Canada Revenue Agency (CRA). The Canadian income tax year is from January 1 to December 31. If you owe income tax, you must pay it by April 30 for the previous calendar year. Late submissions are accepted, but there may be a penalty.

If you are employed in Canada, your employer must withhold and remit to the CRA statutory deductions from your wages. These statutory deductions include: income tax, Canada Pension Plan (CPP) and Employment Insurance (EI). In order to deduct the proper amount of income tax from your wages, your employer will ask you to complete both the TD-1 (federal) and the TD1-BC forms. Employers will deduct an amount from each pay cheque for Canada Pension Plan (CPP) and Employment Insurance (EI).

You are responsible for determining your tax filing obligations and income tax status in Canada. You can get help through the UBC Tax Assistance Clinic held in the UBC Life Building in late February and early March.

You may be eligible to deduct certain expenses from your tax payments. Moving expenses such as transportation and storage of personal effects, travel, and temporary accommodation may be considered eligible deductions. Save your receipts for the cost of relocating to Canada. However, 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 under the current legislation.

You may also deduct childcare expenses, Registered Retirement Savings Plan (RRSP) contributions, and union dues.

Most international students “file a tax return” (submit an income tax form to the government) to receive benefits and tax credits (money from governments or the chance to lower taxes later). International students may have to pay Canadian income tax on income earned from teaching and/or research assistantships, other employment, and investment and business income. Generally, students also have to report income they receive from outside of Canada.

The Canadian tax system is based on your residency status, not citizenship. Students from countries that have a tax treaty with Canada may not have to pay Canadian income tax and may be able to request that their employer stop withholding tax from their Canadian employment income with permission from CRA.

Determine if you must file a return

You must file a return if:

• You owe income tax to the government (e.g., you earn significant income in Canada).
• You're asked by the CRA to file a return.

Even if you don’t owe any tax, you should file a tax return if:

• You expect an income tax refund from the government.

• You're applying for the GST/HST credit (which provides cash payments to low- and middle-income taxpayers, to help offset the costs of paying GST/HST on taxable purchases).

• You're eligible to receive the child tax credit (for low- and middle-income taxpayers with children).

• You might earn more income in Canada later, such as through Co-op, and want to carry forward Tuition Payment and Education Credits (e.g., save for future years) to reduce the tax you owe in future years.

Learn more about if you have to file a return.

You do not need to pay taxes on your income from scholarships, fellowships, or bursaries, but you must provide UBC with your ITN or SIN when UBC requests it for tax purposes.

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