Expatriate tax ebook - Canada Raymond Chabot
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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 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 |
| 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:
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.
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.