New to Canada?

February 12, 2021 | Mike Biette

In Canada, residents are taxed based on income earned from anywhere in the world. New immigrants are taxed on all income, earned from anywhere in the world, only from the date of their arrived to Canada.

Personal amounts and other deductions on their first tax return may be prorated depending on the period of residence in Canada and the amount earned before arriving.

You must still report the income from your home country from Jan 1 to the date of arrival, and up to two previous years in order to calculate GST, Canada Child Benefits, and other tax credits. GST credits can be applied for immediately after arriving to Canada by completing form RC151 (for those without children) and RC66 (for those with children under age 19).

Immigrants with children under 19 may qualify to begin receiving Canada Child Benefits within 18 months of either parent arriving in Canada, or immediately after becoming a permanent resident. Form RC66 (Canada Child Benefits Application) and RC66SCH (Status in Canada) should be completed shortly after arrival. In order to receive Canada Child Benefit payments, both parents must continue to file income tax returns each year even if one has no income.

A tax professional at TaxTeam can discuss this and other credits and deductions that may affect your taxes. Call 306-694-4829 or visit www.taxteam.ca