Tax is often considered a scary word when you're at home, so why would it be any different when you are abroad? Let me explain. In Canada everyone pays tax, but if you are in Canada on a working holiday VISA, earning less than $11,000, you may be exempt from paying tax!
As a result, you are entitled to a nice little tax refund during tax season. We know the painful process of managing finances abroad - this is why we thought that this short article about getting started would help to make the Canadian tax process as painless as possible. Here are the facts:
Tax Return Deadline
What You Will Need
To file correctly you must have a copy of your T4 form from your employer which should be distributed to all employees by February 28th at the latest. This form outlines all of the tax that you paid for the duration of work with that employer, including your total income, your EI contributions (Employment Insurance) and your CPP contributions (Pension Plan).
The average Canadian tax refund is $998
Many working travelers in Canada have several employers, so don’t fret. You can get a separate T4 form from each employer and if you can’t get a copy, Taxback.com can help you out.
You must provide a piece of identification (a passport will always work). Other types of identification accepted includes; a full drivers license or any national identity card.
- Keep your T4 form
- Keep any work related receipts
- Keep your bus transit passes
- Don’t file late!
What happens if you File Late?
It is very important to file your taxes before the Canadian tax deadline on April 30th. If you don’t file your taxes on time in Canada, you could incur a penalty fee of 5% on top of anything that you may owe to the Canadian government.
Contact our tax team for more details on filing your Canadian tax return correctly.