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 2009 the rates are the following: 

Federal Rates    
Taxable income (C$) Rate (%) Cumulative tax
0 – 40 726 15 6 109
40 727- 81 452 22 15 069
81 453 – 126 264 26 26 720
Over 126 264 29  


Quebec Rates    
Taxable income (C$) Rate (%) Cumulative tax
0 - 38 385 16 6 142
38 386 – 76 770 20 13 819
Over 76 770 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 *   (21 000)
Taxable income   99 000
Federal income tax   19 631
Less : Non refundable tax credits (NRTC)    
Personal 10 320  
Spousal 10 320  
QPP 2 119  
EI 580  
QPIP 300  
Canada employment amount 1044  
Total NRTC 24 683 * 15% (3 702)
Basic Federal Tax   15 929
Quebec abatement 16,5% * 15 929 (2 628)
Federal income tax   13 301
     
Quebec tax    
Adjustment to federal taxable income : Deduction for workers   (1025)
Quebec taxable income   97 975
Quebec income tax   18 908
Less : Non refundable tax credits    
Basic amount 10 455  
Amount transferred by spouse 10 455  
Total NRTC 20 910 * 20% (4 182)
Quebec income tax   14 726
     
Total tax liability   28 027


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

Information about Canada-RC:

  • introduction
  • facts and figures
  • basis of taxation
  • what taxes?
  • tax planning opportunities

  • Last updated 27 February 2009

    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. 

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