TAXES FOR INTERNATIONAL STUDENTS IN CANADA
If you are an international student in Canada, it is important that you understand the Canada Tax System, know what your rights and responsibilities are.
Canada tax system is based on the "Self-Assessment" system and every tax payer is liable to make a personal tax declaration within the required legal rules.
In this blog, we have summarized required information and documents before the tax declarations for international students in Canada:
SOCIAL INSURANCE NUMBER (SIN) OR INDIVIDUAL TAX NUMBER (ITN)
If you do not have social insurance number, you can call Service Canada or go to the nearest Service Canada offices and apply.
If you do not have the right to receive SIN, apply ITN with T1261, Application for a Canada Revenue Agency Individual Tax Number (ITN) for Non-Resident form and send to Canada Revenue Agency.
If any application for Social Insurance Number, Individual Tax Number or Temporary Tax Number numbers already made to file a tax refund, the result of the application should be waited.
The second important subject that our international students should consider before making their tax refunds is residency status.
Individuals are taxed according to their residency status in Canada. If you are resident in Canada, that is certified as “Canadian Resident” and you are taxed on all your income.
On the other hand, If you are in the "non-resident" status in Canada, you are taxed only from your income in Canada, NOT all of your world income.
NOT SURE YOUR RESIDENCY STATUS
If you are NOT sure of your status in Canada when making a tax declaration, you can fill the form NR74, Determination of Residency Status (Entering Canada) and send to the CRA and to the tax office. CRA will answer you a clear answer about your status in accordance with the information you specify in the form.
INTERNATIONAL STUDENTS 'TAX DECLARATION DEADLINE
Tax declaration for international students are like other personal tax payers, the deadline is April 30th and if there is a tax liability, it should be paid by this date.
INTERNATIONAL STUDENTS’ TAX DECLARATION AND BENEFITS
If you do not have tax liability, the declaration is NOT mandatory, but if you are a resident in Canada for tax purposes, the Government of Canada provides credits and benefits to lower income individuals and families. And in order to get those benefits you MUST file tax returns on time.
INTERNATIONAL STUDENTS’ TUITION FEES
The expenditures under the name of “tuition fees” for the school of our international students in the second important subject.
Tuition fees under the name of expenditure are rating under the tax office by Non-Refundable Tax Credits which means international students’ can NOT receive their tuition fees expense as a tax refund but it could be used tax credit (expense) to reduce your tax liability.
Contact us: If you need more information regarding international students’ tax returns, you can contact us at 647-987-2099 or send email to firstname.lastname@example.org to book a free consultation.