Upon the approval of your permanent residency visa, the Canada Revenue Agency expects you to start filing your income tax return promptly. Tax Return For New Permanent Residents starts from the date you entered Canada.
If you immigrated to Canada with a permanent resident visa, the CRA may likely consider you to be a part-year resident for income tax. If you are deemed by CRA to be a permanent resident partway through the year, you only have to pay tax on your worldwide income from the date when you entered Canada. That means all of the income that you earn in Canada as well as other worldwide income earned after your arrival must be reported. Non-refundable tax credits, such as the basic personal amount and the spousal amount, are prorated based on how long you have been a permanent resident in Canada.
The CRA considers you to be a permanent resident for tax purposes when you establish significant residential ties in Canada. Most times, these ties happen on the date when you arrive in Canada. Examples of significant residential ties include:
- Establishing a home in Canada;
- A spouse or common-law partner in Canada;
- Dependents in Canada.
If you were considered a resident of Canada the previous year and you are now a non-resident, the CRA considers you to be a Canadian resident for tax purposes when you move back to Canada and establish residential ties. It is a good idea to contact CRA prior to preparing your tax return because CRA determines residency on a case by case basis.
Do You Have To File A Tax Return?
Whether you are a resident for part of the year or full year, you will still need to file a tax return if you have a balance owing or if you would like a refund. Even though you don’t have any earned income, it is to your advantage to file a tax return to claim certain payments or credits.
There is no special tax return that needs to be completed by new permanent residents. However, you can complete the same general income tax and benefit package as Canadian-born citizens. Your tax return must be filed by April 30 deadline. You can claim any applicable federal deductions like childcare costs, medical expenses, and caregiver amounts. Review all provincially specific credits as well to ensure you are claiming everything available to you.
You can see who is required to file an income tax return.