Everything You Need to Know about Claiming Back Tax from Canada

Claiming back tax from Canada


Like anywhere else around the world, working in Canada means you’ll be taxed on all your earnings. There’s also a possibility that you may be over taxed for one reason or another. If this happens, you should claim back tax and enjoy the fruits of your labour, so to speak.

Have you worked in Canada?

Fast Facts on Canada Tax

Canadian Tax Year

The tax year in Canada runs from 1st January to 31st December, and you should file a tax return on or before 30 April. For the 2016 tax return, you should file on or before 30 April 2017. If the date falls on a Sunday, the deadline for submission is moved to 1 May 2017.
Self-employed individuals should file a tax return midnight on 15 June 2017. But any unpaid tax must be settled on or before 30 April 2017.

Average Canadian Tax Refund

On average, you will receive a tax refund of $904, which is a lot. But you can still get more money if you contribute to your Registered Retirement Savings Plan if possible, keep your transit passes, claim medical expenses and interest from a student loan, and claim on your internet and mobile phone.

Amount of Income Tax on Your Earnings

You’re likely to pay 15% to 29% of tax on your income, depending on your residency status. If you’re a working holidaymaker or holds another temporary work Visa in Canada, you are considered a non-resident. Under the circumstances, only income from Canadian sources will be taxed.

Criteria of Non-Residency for Tax Purposes

You are considered a non-resident for tax purposes if you satisfy the following:

• Not a resident in Canada since you live in another country
• Lives outside of Canada during or for most of the tax year
• Number of days spent in Canada is less than 183 in the tax year
• Lacks significant residential ties in Canada

How to Claim Back Tax in Canada

1. Make sure to have your Social Insurance Number ready, which you should apply for the moment you receive your work permit and before you start working.

2. Prepare your T4 or statement of remuneration before you lodge an application. If this is not available, present your final cumulative payslip instead.

3. Have copies of your ID ready.

4. Consider working with a tax expert to claim back Canadian tax as they can help ensure you get the maximum legal tax refund. Anything confusing about the process, they can smooth out for you as well.

You have 10 years to apply for a Canadian tax, which means all that unclaimed overpaid tax is going to add up. Imagine what you can do with that amount.

How long before you can expect a refund will depend on how you made a claim. If you filed electronically, you may receive a refund in as quickly as 8 business days. If you filed a paper return, wait for four to six weeks since this is the amount of time the Canada Revenue Agency usually spends to process paper returns.

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