Taxes in Canada

Everyone who works in Canada has to have a unique Social Insurance Number (SIN), which he needs to apply for just after the arrival in the country.

The financial year here begins on 1st January and ends on 31th December. At the end of the financial year is everyone who worked in Canada in that period required to file a tax return. This has to be done between 1st March and 30th April next year.

To submit a tax return, you will need:

• Your social insurance number
• T4 form from all the employers that you have worked for in the given financial year

The refund rate depends on several factors:

• the length of your stay
• type of your visa
• how much have you worked within the financial year
• how many different employers you have had in the given year
• what tax benefits has your employer paid for you

The following items are usually debited from the salary:

Canada Pension Plan (CPP) - that is about 3% of the salary

Employment Insurance (EI)- only Canadian citizens are entitled to get the return. The amount is also about 3% of the salary.

Income Tax - which is around 17-27% of salary