Who Need to File Tax Return in Canada ?

Regarding the question of whether you have to file a Tax Return in Canada or not? If you have Residential Ties in Canada, you may need to File a Tax Return; Please see the details below.


Primary ties/Significant Residential ties/ Factual Resident:

If you meet any of the requirements listed below, you are considered a resident of Canada.

• Home in Canada (either rental or owned by you)

• Spouse / Common Law Partner living in Canada

• Dependents living in Canada. (Children under 18 years of age or infirmed dependents.)

For new immigrants, a PR card and a valid health card are enough ties for an individual to be considered a resident regardless of how long they stayed in Canada. A Canadian resident is taxed on their worldwide income.

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While you were living outside of Canada.

Secondary ties include:
➢ Driver's license
➢ Health Card
➢ Canadian Bank A/C
➢ Credit Cards
➢ Furniture & clothing
➢ Membership in clubs
➢ Pension plans, RRSP, TFSA
➢ Vehicles
➢ Pets in Canada
➢ Health Insurance
➢ Personal Property
➢ Canadian passport
➢ Social ties, etc.

You should file if you meet any of the following criteria:

●You owe tax for the year.
●You want to claim a refund.
●You want to claim specific benefits such as the Canada workers benefit (CWB), Canada child benefit (CCB), GST/HST credit, Climate action incentive payment (CAIP), Guaranteed income supplement (GIS), etc.
●The CRA requests you to file.
●You disposed of capital property or realized a taxable capital gain.
●You need to repay OAS benefits or EI benefits.
●You haven't repaid amounts withdrawn from RRSP under programs like the Home Buyers' Plan or Lifelong Learning Plan.
●You need to contribute to the Canada Pension Plan (CPP).
●You have incurred a non-capital loss.
●You want to transfer unused tuition fees or carry forward unused amounts for future years.
●You want to report income for RRSP, PRPP, or SPP contributions.
●You opened a First home savings account (FHSA) in 2023.
●You want to carry forward unused investment tax credits or increase your Canada training credit limit.

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Here's a summarized list of who should file a tax return in Canada.

●Canadian Residents: If you live and work in Canada, you need to file taxes to pay taxes and receive credits and benefit payments.
●Newcomers to Canada (Immigrants): Individuals who have settled in Canada from another country need to file taxes.
●Filing Taxes for Someone Who Died: If you're the legal representative of someone who passed away, you may need to file a final return and handle related matters.
●Factual Residents Leaving Canada Temporarily or Permanently: If you're a resident leaving temporarily for reasons like work, school, medical procedures, or vacation, you might need to file taxes.
●Non-Residents of Canada: If you live in Canada for less than 183 days in a year without significant residential ties, you may still need to file taxes, especially if you have rental income from Canadian properties.
●Deemed Residents: Individuals who spend 183 days or more in Canada in a year but don't have significant residential ties might be required to file taxes.
●International Students: If you're an international student studying in Canada, you need to file taxes.
●Seasonal Workers: Seasonal agricultural workers from other countries working in Canada may need to file taxes.