Expatriate tax ebook - Canada Raymond Chabot

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
There are no pre arrival procedures in Canada - province of Quebec.

Employment visas
Most temporary employment does not require an employment visa.

Tax year
Calendar year.

Tax returns and compliance
There are two filing deadlines;

April 30 for most individuals, and
June 15 for individuals and their spouse, earning unincorporated business income.

No extension of time to file allowed and taxes are due, in full, by April 30. Late filing penalties and interests apply and are based only on unpaid taxes.

Income tax rates
There are two levels of taxation: federal and provincial. The rates vary depending on in which province or territory the individual was resident in on December 31 of a particular year.

The highest combined rate of tax is 48.2% in the province of Quebec.

For the 2011 the rates are the following:

Federal Rates
Taxable income (C$)	Rate (%)	Cumulative tax
0 – 41 544	15	6 232
41 545- 83 088	22	15 371
83 088 – 128 800	26	27 256
Over 128 800	29

Quebec Rates
Taxable income (C$)	Rate (%)	Cumulative tax
0 – 39 060	16	6 250
39 061 – 78 120	20	14 062
Over 78 120	24

Sample income tax calculation

Federal Tax		C$
Base salary		80 000
Bonus		20 000
Cost of living allowance		15 000
Bank interest		5 000
Total Income		120 000
RRSP *		(22 450)
Taxable income		97 550
Federal income tax		19 131
Less : Non refundable tax credits (NRTC)
Personal	10 527
Spousal	10 527
QPP	2 218
EI	636
QPIP	344
Canada employment amount	1065
Total NRTC	23 317 * 15%	(3 798)
Basic Federal Tax		15 333
Quebec abatement	16,5% * 15 333	(2 530)
Federal income tax		12 803

Quebec tax
Adjustment to federal taxable income : Deduction for workers		(1045)
Quebec taxable income		96 505
Quebec income tax		18 474
Less : Non refundable tax credits
Basic amount	10 640
Amount transferred by spouse	10 640
Total NRTC	21 280 * 20%	(4 256)

Quebec income tax		14 218
Health contribution		100
Total Quebec income tax		14 318

Total Tax Liability		27 121

* private retirement savings plans are known as Registered Retirement Savings Plans (RRSP)

Information about Canada-RC:

tax planning opportunities

Last updated 13 June 2011

This information has been provided by Raymond Chabot Grant Thornton LLP, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Raymond Chabot Grant Thornton LLP nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer

Contact us

For further information on expatriate tax services in Canada-province of Quebec please contact Eric Labelle.

Related websites

Canada Revenue Agency
Revenue Québec
Régie des rentes du Québec

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