The Canadian tax year follows the calendar year, running from January 1st to December 31st. All income earned and expenses incurred within this period are reported on your tax return for that year.

A Social Insurance Number (SIN) is a unique 9-digit number issued by the Government of Canada. It is required for anyone who wants to work in Canada and receive government benefits. Your SIN is used primarily for tax reporting and to access certain public services.

You must apply for a SIN as soon as you arrive in Canada and after your work permit has been activated (i.e. after you have entered Canada and your permit has started).

You can apply:

• In person at a Service Canada office (recommended for faster processing and if you need the SIN immediately)

• Online, by uploading your documents through the official Service Canada website

To apply, you will need:

• Your valid work permit

• Your passport

If you are in Canada on a temporary work permit, your SIN will always start with the number “9”. This indicates that your right to work is time-limited and tied to the conditions of your work permit.

• Your SIN will expire on the same date as your work permit.

• If you receive a new work permit (e.g. an extension or a new type of permit), you must update your SIN by visiting a Service Canada office again with your new permit.

Important!! 

• 🔒 Keep your SIN confidential. Only share it with:

  • Employers (for payroll and tax purposes)

  • Government departments (such as CRA or Service Canada)

  • Financial institutions (such as banks, for tax reporting)

• Never give out your SIN unless it’s legally required. Misuse of your SIN could lead to identity theft or fraud.

The T4 – Statement of Remuneration Paid is a summary provided by your employer that shows:

• Your total earnings for the year

• Deductions taken (such as income tax, EI, and CPP)

• Other taxable benefits or allowances you may have received

Employers are legally required to send the T4 to:

• You, by the end of February following the calendar year you worked

• The Canada Revenue Agency (CRA), for tax reporting purposes

Even if you only worked for a few days, your employer must issue a T4.

Most employers send the T4 by mail to the address they have on file. Some may offer to email it to you or upload it to an internal portal.

Tip: Keep your contact details up to date with former employers so you don’t miss important documents.

If you haven’t received your T4 by the end of March (to allow time for mailing), contact the employer and ask for a copy.

If you have filed at least one tax return in Canada before, you can register for a My CRA Account. This is a secure portal where you can:

• View and download your T4 slips

• See any other tax documents issued under your name

• Track refunds and benefit payments

⚠️ Note: You can only register for a My CRA Account after filing your first Canadian tax return.

When you work in Canada, your employer is responsible for deducting certain mandatory contributions from your wages and sending them to the Canada Revenue Agency (CRA). These are:

• CPP – Canada Pension Plan

• EI – Employment Insurance

Both are automatically deducted from your paycheque, and you’ll see the amounts listed on your T4 slip at the end of the tax year.

All employees in Canada who are:

• 18 years or older

• Earning $3,500 or more per year
  …are required to pay into CPP — regardless of citizenship or immigration status (yes, even if you’re on a temporary work permit).

Where to find CPP deductions on your T4?

• Box 16 on the T4 slip

CPP = Canada Pension Plan rates

• 2024 = 5.95% but a max. of $3,867.50
• 2025 = 5.95% but a max. of $4,034.10

EI = Employment Insurance

EI provides temporary income support if you lose your job through no fault of your own, such as layoffs, seasonal work ending, or company closures. If you worked enough insurable hours, you may qualify for EI benefits while looking for new work.

Where to find EI deductions on your T4?

• Box 18 on the T4 slip

More info on the EI benefits >> here <<.

• 2024 = 1.66% but a max. of $1,049.12
• 2025 = 1.64% but a max. of $1,077.48

You have to file taxes if any of the following applies to you.

• You have to pay tax for the year
• You want to claim a refund
• You want to claim the Canada workers benefit (CWB) or you received CWB advance payments in the year
• You want to claim the GST⁄HST credit
• The CRA sent you a request to file a return
• You were self employed and your total income for the tax year was over $3,500

The entire list >> here << on the official government homepage

When filing taxes in Canada, it’s important to know the official deadlines to avoid penalties—especially if you owe money to the Canada Revenue Agency (CRA).

• April 30 – For employees and personal tax returns

• June 15 – For self-employed individuals or those with business income

🔸 However, if you owe taxes, payment is still due by April 30, even if your filing deadline is June 15.

• There are no late penalties or interest if you’re getting money back.

• You can file late returns for up to 10 years to claim your refund.

• That means you can still file past years (e.g., 2015–2024) and get your refund if eligible.

💡 The CRA accepts late tax returns year-round. It’s never too late to file, especially if you’re owed money.

Filing late when you owe money results in both interest and penalties:

1. Interest Charges

• Starts May 1 (the day after the deadline)

• Charged daily, and compounds over time

• Applies to any unpaid balance

2. Late-Filing Penalty

• 5% of the amount you owe, plus

• 1% of the balance for each full month your return is late

• Up to a maximum of 12 months

Even if you can’t pay your tax bill right away, it’s better to file your return on time to avoid the late-filing penalty. The CRA may allow payment plans for those who can’t pay in full.

No, you don’t have to file a Canadian tax return if you didn’t earn any form of income during the tax year.
For example, if you arrived in Canada in December but didn’t start working until the following year, you are not required to file a return for that year.

Working Holiday Permit:
This is an open work permit, which means you can work for any employer in Canada and in any capacity — whether as an employee or self-employed. The only exceptions are jobs explicitly excluded on your work permit document. This flexibility allows you to explore different types of work during your stay.

Young Professional Permit:
This permit is employer-specific. You are tied to a single Canadian employer listed on your work permit and cannot work for another employer or take on a part-time or freelance job, even if you wish to. 

A few more important info pieces  >> here <<

For past years:

In fact, if you’re expecting a refund, you have up to 10 years to file a return and claim your money. However, it’s important to note that the CRA is in no hurry to pay out what they owe you—so the sooner you file, the better.

For the current year:

You must wait until February of the following year to file your current year’s tax return.

For example, tax returns for the 2025 tax year cannot be submitted before mid-February 2026, which is when the CRA activates its official tax software.

By this time, you will also have received all your T4 slips from your employers, which are necessary to complete and submit your return.

Yes, you can file your tax return online using certified tax software even if it is the first time.

Here is a helping hand on simple tax situations.

If you haven’t earned any income in Canada and therefore didn’t file a tax return, you won’t have any problems at the border — for example, if you’re returning as a visitor in the future. Not filing a return when you’re not required to does not affect your ability to re-enter Canada.

If you did file a tax return but didn’t pay the amount owing, that’s a different situation.

The Canada Revenue Agency (CRA) may take various steps to recover the debt, such as:

• Charging daily interest and late penalties

• Freezing Canadian bank accounts

• Seizing tax refunds from future years

• Working with collection agencies

🔸 Tax debt alone does not usually impact your immigration status or travel, but it could become an issue if your case escalates (e.g. court involvement or serious non-compliance over several years).

This question cannot be answered this simple, because every tax situation is different. Whether you are eligible for a partial or full tax refund depends on several key factors, such as:

• Time Spent in Canada
  The length of your stay during the tax year can influence how you’re taxed and what portion of your income qualifies for Canadian tax benefits or credits.

• Tax Residency Status
  You must determine whether you’re filing your return as a resident or non-resident for tax purposes.

  • Residents may claim a full set of tax credits and deductions.

  • Non-residents may have limited eligibility and are only taxed on Canadian-source income.

• Foreign Income Before or After Your Stay in Canada
  While foreign income earned before arriving or after leaving Canada is not taxed by the CRA, it is still required to be reported. The CRA uses this information to calculate how much of the non-refundable tax credits you’re entitled to during the Canadian part of the year.

No, the Canada Revenue Agency (CRA) does not deposit tax refunds into bank accounts outside of Canada.

Therefore, if you’re no longer living in Canada or you don’t have a Canadian bank account, the CRA will issue your tax refund as a cheque, which will be mailed to the address listed on your tax return.

❗️Note: If you already filed a tax return in Canada before:

If you’ve previously filed a Canadian tax return and signed up for direct deposit, it’s important to note:
If you closed your Canadian bank account before receiving your refund, the CRA will still try to deposit the funds into that closed account. Unfortunately, the CRA isn’t notified of account closures, so this often results in delays and complications in receiving your money.

✅ Alternative Option: Use Wise to Receive Your Refund 

Wise (formerly TransferWise) offers a reliable alternative to help you receive your refund even after leaving Canada.

Here you can open a free Wise account.

Here’s how it works:

1. Open a free Wise account – it’s quick and easy.

2. Generate Canadian bank account details through Wise.

3. Update your CRA direct deposit information with these new Wise details via your CRA online account.

As a result, the CRA will deposit your tax refund directly into your Wise account—no need to keep a Canadian bank account.

Once the refund arrives, you can transfer the funds to your bank account in your home country.

As a bonus, if you click this link, Wise will waive the fee for your first transfer of up to $800 CAD. How great is that?

Before proceeding, make sure to check if Wise is available in your country, as availability may vary.

If you owe taxes because not enough were deducted from the pay cheques, then there are a few options to pay amounts owing.

The options >> here <<

Yes, as a regular employee you can claim certain expenses towards the taxes. More to this topic in an extra post >> here << on this same homepage. 

Determining tax residency is not an easy task. If you want to knock yourself out with the “Income Tax Folio” >> here you go <<. I will try to explain it as simple as possible on this info page. 

The following facts have a positive effect on the classification as “resident”, the more you have, the better the chances are.

• Family (spouse and children) joins you in Canada,
• Own/rent a home with a rental agreement (no flat share or roommate),
• Length of stay (longer than 183 days in Canada in the tax year),
• Canadian health insurance from a province,
• Car,
• Canadian driver’s license,
• Canadian bank account,
• Canadian SIM card or mobile phone contract

The two strongest ties to Canada, and therefore also the most important ones (“significant residential ties”), are family members (spouse and children) and owning/renting a home in Canada. All other items in the list are “secondary residential ties” and you need to have many of them to qualify as “resident”.

Another stronger tie, in my opinion, is a health care card from a province. Canadian health insurance is hard to get because you must meet certain residency requirements. Therefore it will have a very positive effect on the residency determination.

Here are a few examples of “non-resident”:

• If you have none of the above ties to Canada at all.
• If the family members (spouse and / or children) stayed in your home country.
• If you still have a home in your home country. You are automatically non-resident in Canada because home ownership is the most important factor and negates all other factors.
• If you were in Canada for less than 183 days in the tax year and only stayed in hostels or camped in a car.
• If you were in Canada for more than 183 days in the tax year, but only worked briefly in several provinces and slept in hostels, staff accommodation or in the car. So a typical backpacker on a road trip.
• If you just do a paid internship in Canada for a few months.
• If you only come to work on a farm for a few months.
• If you only come for a few months to work as an Au pair with a family.
• If you have entered and left the country in the same tax year, e.g. entry in April 2023 and exited in August 2023.

Important! In order to file the tax return as a non-resident, you have to use other tax packages/forms and you cannot submit the tax return online or via a software.

When filing your Canadian tax return as a non-resident, the 90% rule plays an important role in determining whether you get a tax refund or owe taxes.

Short explanation without much confusion:

As a taxpayer, you have non-refundable tax credits that reduce the amount of tax you owe. Most Canadian employers calculate tax deductions assuming you are a resident and apply the full amount of these credits when withholding taxes from your pay.

However, as a non-resident, you can only claim these non-refundable tax credits if your Canadian income makes up more than 90% of your total worldwide income for the tax year.

Total worldwide income = Income earned in Canada + Income earned outside Canada

• If your Canadian income is over 90% of your worldwide income, you can claim the full non-refundable tax credits.
  → This usually results in a tax refund because your employer deducted less tax than required for a non-resident.

• If your Canadian income is less than 90% of your worldwide income, you cannot claim these tax credits.
  → This often means you owe taxes because the tax deducted by your employer was too low.

It depends on how you file your tax return.

• Online tax returns take about 8-10 days.
• By post as resident: Up to 8 weeks
• By post as non-resident: Up to 16 weeks

Canadataxback can help you with the Canadian tax return. With a special commercial tax software that is only programmed for tax preparers, it can capture all possible tax situations. Entry dates, exit dates, non residents and foreign addresses.

Canadataxback has been helping IEC participants since 2014.

• The service fee is a flat fee of only $50

This unbeatable pricing offers great value compared to other online tax services.

There are a few steps you can take in order to have a smooth sailing for the last tax return in Canada (departure tax return). >> More info here <<