FAQ: Frequently Asked Questions

All residents of Canada must file a tax return annually, even if they earned little or no income. This includes:

• Canadian citizens and permanent residents.

• Immigrants with work or study visas (after 183 days in Canada).

• Anyone who earned income from Canadian sources (employment, rental income, investments, etc.).

Non-residents may also be required to file if they earned income from Canada (rent, pension, etc.).

If the deadline falls on a weekend or holiday, the deadline is extended to the next business day.

You will need documents that prove your income, deductible expenses, and contributions. The main documents are:

Consequences include:

• Late penalties: 5% of the taxes owed + 1% for each month you are late (up to 12 months).

• Compound interest on any outstanding balance.

• Loss of benefits: such as GST/HST Credit, Canada Child Benefit, and others.

• The CRA may apply additional penalties for omissions or fraud.

Even if you have no income, it is advisable to file to maintain access to social benefits.

You are considered a tax resident if:

• You live in Canada for more than 183 days in the year.

• You have significant ties to the country (home, spouse, children, bank accounts).

• You have come to reside permanently (immigrant, PR, or with work/study permits).

The CRA determines individual residency, so even students and temporary workers may be considered tax residents.

Example: If your employer withheld $5,000 in tax but the final calculation shows you owed only $4,000, you will receive a refund of $1,000.

Note: Delays may occur if:

• Documents are missing.

• There are errors in your return.

• The CRA selects your return for review.

Yes, you can and should file even if you had no income, as:

• You are a tax resident in Canada.

• You want to receive benefits like the GST/HST Credit or Canada Child Benefit.

• You want to accumulate tax credits for the future (tuition, RRSP, etc.).

Conclusion: Filing with no income won’t result in taxes owed but may ensure benefits or credits.

The main deductions and credits include:

Important: Keep receipts for at least 6 years.

The RRSP (Registered Retirement Savings Plan) is a retirement savings account that reduces your taxable income.

Contribution Deadline: Up to 60 days after the fiscal year-end (usually by the end of February of the following year).

Yes, international students in Canada may need to file taxes, depending on their situation:

• If they are tax residents of Canada (living for more than 183 days in the year), they need to file.

• If they earned income (on-campus, off-campus work, scholarships), they must file to pay taxes or receive a refund.

• Even without income, filing may ensure benefits like GST/HST Credit or accumulate tax credits (tuition).

Rental income in Canada must be reported as additional income. The steps are:

1. Report the total rental income on form T776 (Statement of Real Estate Rentals).

2. Deduct eligible expenses, such as:

   • Maintenance costs

   • Property insurance

   • Mortgage (if applicable)

   • Property taxes

3. Capital gains: If you sell the property for a profit, you need to report the capital gain (use Schedule 3).

Yes, Canadian tax residents must report worldwide income, including:

• Income from employment or business outside of Canada (Brazil or other countries).

• Dividends and interest from foreign bank accounts or investments.

• Pensions or retirement income from foreign sources.

However, you may be eligible for foreign tax credits to avoid double taxation. The Foreign Tax Credit helps reduce the taxes owed in Canada if you’ve already paid taxes in Brazil.

In Canada, there is no minimum income required to file. Even if you have little or no income, it is recommended to file if:

• You are a tax resident in Canada.

• You want to receive benefits (like GST/HST Credit, Canada Child Benefit, etc.).

• You have deductions or tax credits to accumulate (such as RRSP, tuition credits, etc.).

If you earned income, taxes will be calculated, but in many cases, filing could result in a tax refund.

Self-employed individuals must report their income as sole proprietors. The steps include:

1. Fill out form T2125 (Statement of Business or Professional Activities).

2. Report all business income from self-employment.

3. Deduct business expenses, such as:

   • Equipment costs, software, office rent, business travel, etc.

4. CPP Contributions: As a self-employed person, you must pay both the employee and employer portions of CPP.

Important: The net profit (income minus expenses) will be taxed, so keeping detailed records of all income and expenses is crucial.

The main forms used for filing taxes in Canada are:

These are just a few examples. Depending on your situation, other forms may be required.

You can track the status of your tax return and refund in two ways:

1. Online via CRA My Account:

   • Log in to view your tax return status and refund details.

   • Check your Notice of Assessment (tax determination).

2. Using the CRA mobile app:

   • Use the app to check your return, refund, and other tax information.

Tip: If the refund is sent by cheque, it may take longer to process.

If you’re new to Canada, your first return can be a bit more complicated, but follow these steps:

1. Get your SIN (Social Insurance Number): This number is required to file taxes.

2. Determine your tax residency: Even newly arrived immigrants may be considered tax residents.

3. Gather documents: Even with little income, documents like T4 (if you worked) or T2202 (if you studied) are needed.

4. File the tax return: Use form T1, correctly filling out your residency and income details.

5. File by April 30 (or 6 months after arrival if self-employed).

Tip: It’s recommended to seek help from a tax professional to file.

If you don’t file your tax return, you may lose the following benefits:

• GST/HST Credit: A rebate for consumption tax (helps with living costs).

• Canada Child Benefit (CCB): Monthly payments for families with children.

• Provincial Benefits: Specific provincial benefits (e.g., Trillium Benefit in Ontario).

• Tax Credits: Like tuition credits or RRSP, which can