Canada is considered to be one of the highest taxing country in the world. For some Canadians, it will be 15 percent of their salary and for those who are considered to be in a higher earnings bracket – those with an annual salary of $40,000 or more – will find that it is a higher percentage that is deducted. Unlike many countries, the Canada tax year runs from the beginning of January to the end of December and you need to put in the forms for the year that proceeded the working year.
A tax form will declare you a resident if you have resided in Canada for a period of 6 months or more and it will be to your advantage to check if the country you are from has any sort of agreement with Canada as this can affect the status you have. If you are putting in tax return forms as a non-resident, the only money you have to declare is money that was earned in Canada. However, if you are a Canadian resident you will need to declare all the money you earned, wherever it was obtained.
One common form that has to be filled in for a tax return is referred to as the T4 slip and your employee will send one out to you and there has to be one T4 form for each employer that you have had during the 12 month period. It is your responsibility to give correct addresses so that the forms will reach you on time. The Canada Post outlets will provide other forms that you need and this will also be the place to go to collect guides that will help you every step of the way. There are others ways to get information.
The main one will be via the CRA website and the section that covers the province where you were employed. The forms can be daunting if you are not used to them and there are companies who will take the burden off your shoulders and fill them in for you. You are going to have to provide them with all the facts and figures and they will fill in the tax return forms and while there will be a fee for their services, the knowledge they have can save you a lot more than you pay. There is also software that will help you fill in the tax form, but this will still mean you doing a great deal and you still have to have a good knowledge of what has to be put in.
If you are abroad when the time comes to fill in the forms, there is again the chance to have help and the fee you pay will well be worth it to make life that much easier for you. Once the tax return forms have been filled in, they have to be returned to the International Tax Services Office. Before you finish, make sure that you have applied for all the discounts you are eligible for and have taken into account your personal exemption.