How Taxes Work When You Are New to Canada
Your first Canadian tax return does not have to be confusing.
Canada's tax system has rules that are unique to newcomers, partial-year returns, world income declarations, and eligibility rules most Canadians never encounter. Our accountants and our tax software file your first return correctly so your tax history in Canada starts right.
File My First Canadian ReturnNo Tax Knowledge Required
You upload your documents. Our accountants and our tax software handle every form and rule.
Partial-Year Returns Handled
Newcomers have unique filing rules. Our team knows all of them.
All Income Sources Covered
Employment, foreign income, and world income all handled on one return through the T.U.A app.
Do Newcomers to Canada Have to Pay Taxes?
Canadian tax residency begins on the date you arrive and establish residential ties. Canada taxes residents on worldwide income from the date of arrival. Newcomers file what the CRA calls a part-year return, which has different rules than a standard full-year return.
Employment, business, and investment income all apply. Most newcomers are surprised by the worldwide income requirement, assuming only income earned within Canadian borders is taxable.
What Is the CRA 90% Rule for Newcomers?
To claim most non-refundable federal tax credits, at least 90% of your total world income for the year must come from Canadian sources. If you earned significant income in another country before arriving in Canada in the same tax year, you may fall below this threshold.
When you don't meet the 90% test, the CRA prorates those credits. This affects tax owing or refund significantly. Our accountants and our tax software apply the 90% test to every newcomer return as a standard step.
What Tax Credits and Benefits Can Newcomers Claim in Canada?
The GST/HST credit is a quarterly federal payment newcomers qualify for once they file. The Canada Child Benefit provides monthly tax-free payments for families with children under 18. Both require a filed return to activate.
Provincial benefits are often triggered by the same filed return. Many newcomers miss months of benefit payments by delaying their first filing. Filing promptly upon arrival is always worthwhile.
Filing your first return activates your eligibility for government benefits including the GST/HST credit and Canada Child Benefit. Most newcomers leave thousands in unclaimed benefits by delaying.
What Documents Do You Need for Your First Canadian Tax Return?
You will need a T4 slip from any Canadian employers you worked for. You also need documentation of income earned outside Canada before your arrival. A Social Insurance Number is required for filing.
T.U.A generates a personalized document checklist based on your intake questionnaire answers, so you only gather exactly what you need to submit through the app.
How Do You Report Foreign Income When You Arrive in Canada?
From the date of Canadian residency, all worldwide income must be reported. This income must be converted to Canadian dollars using Bank of Canada exchange rates. Canada has tax treaties with many countries to prevent double taxation.
Treaty rules vary by country. Our accountants and our tax software are familiar with major Canadian tax treaty provisions and ensure your foreign income is reported correctly without being taxed twice.
Can Newcomers to Canada File Their Taxes Online?
Yes, NETFILE is available to newcomers with a SIN. T.U.A uses the CRA's EFILE professional channel. No CRA My Account is required before your first filing. Setting up CRA My Account after the first return is processed is strongly recommended.
How T.U.A Files Your First Canadian Return
Our team understands part-year residency rules, the 90% world income test, foreign income reporting, and Canada's tax treaty provisions. Our intake questionnaire captures your arrival date, income sources inside and outside Canada, and personal situation.
Your accountant prepares a complete T1, handling part-year calculations, assessing eligibility for every applicable credit, reporting foreign income with correct exchange rates, and submitting electronic filing via EFILE.
Start Your Canadian Tax History the Right Way
Your first return sets the foundation for years of benefits, RRSP contribution room, and government credits. Let our accountants and our tax software file it accurately.
Frequently Asked Questions
Common questions about filing taxes as a newcomer to Canada.
Learn more about how T.U.A worksPricingFAQ