Webinar - International Students

Transcript

Slide 1 - Webinar for international students studying in Canada

[Shakib]: Hello, and welcome.

My name is Shakib, my pronouns are he/him. I have black hair, brown eyes.

I’m with the Canada Revenue Agency, or the CRA for short, and I’m happy to be here.

Today I’ll talk about taxes and, the benefit and credit payments available for international students studying in Canada.

[Visual]: Three individuals smiling at each other outside a school.

Slide 2 – Land Acknowledgment

[Shakib]: Before we get started, I wish to acknowledge that the land on which I am presenting from, in the Ontario region, is the unceded territory of many nations including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples and is now home to many diverse First Nations, Inuit and Métis. Also, I acknowledge that the land is covered by Treaty 13 with the Mississaugas of the Credit.

Given that we are meeting virtually, I also want to acknowledge the lands on which you are gathered from coast to coast and invite you to take a moment of silence to have a thought for the territory in which you find yourself.

[Visual]: An eagle, narwhal and fiddle icon.

Slide 3 - Outline

[Shakib]: Now, let’s get started!

In this presentation, you will learn about:

• Canada’s tax system
• residency status for income tax purposes
• filing an income tax return
• tax credits for students
• the underground economy
• ways to do your taxes
• online services
• the “Learn about your taxes” online learning tool; and
• scams

[Visual]: A person carrying a shoulder bag and a notebook in their hand stands in a sunny schoolyard and smiles.

Slide 4 - Why do we pay taxes?

[Shakib]: Let’s start with why we pay taxes and what they’re for.

Many public services, programs, and benefits are made possible through taxes. The government collects tax to pay for things such as airports, education, emergency services, health care, libraries, roads, and social programs.

The tax we pay in Canada also helps put money into the pockets of students, families, newcomers, seniors, and persons with disabilities. This money is distributed through benefit and credit payments.

They also fund social programs to help members of our community. Some examples are income support and Old Age Security.

Taxes can be municipal, provincial, territorial, or federal. Today we’ll be focusing on federal income tax.

[Visual]: Three individuals holding a book in their hands and a backpack on their shoulder smiling.

Slide 5 - Canada’s tax system​

[Shakib]: Canada's tax system is based on self assessment. This means that every taxpayer is responsible for:

• doing their own taxes on time every year
• reporting their income from all sources inside and outside Canada; and
• calculating whether they owe tax or will get a refund.

It is also the taxpayer’s responsibility to ensure that

• they declare accurate and complete information; and
• they notify the CRA of any changes to their personal information.

It’s important to note that the CRA relies on the information taxpayers provide to issue benefit and credit payments. If no return is filed, no payments can be issued.

Slide 6 - Understanding your responsibilities​

[Shakib]: As an international student in Canada, you should understand what your rights, entitlements and obligations are under Canada's tax system.

You are responsible for determining your residency status for income tax purposes, and by law, you must pay what you owe in taxes for each year.

If you would like to know more about your rights as a taxpayer and possible entitlements, visit canada.ca/new-to-canada.

Slide 7 - Residential ties for income tax purposes​

[Shakib]: You become a resident of Canada for income tax purposes when you have significant residential ties in Canada. These ties are usually created on the date you arrive.

Residential ties may include:

• a home in Canada, for instance if you own or rent for personal use
• a spouse or common-law partner in Canada, or dependants who move to Canada to live with you
• personal property, such as a car or furniture; or
• social ties in Canada, like enrolment in a sports activity, being a member of a religious organization, or having a membership to recreational activities such as a gym, school association, or library.

Other relevant residential ties may include a Canadian driver's licence, Canadian bank accounts or credit cards, and health insurance with a Canadian province or territory.

[Visual]: An individual wearing a yellow hat and sweater holds a computer and carries a backpack on one shoulder while standing outside in front of a building.

Slide 8 - Residency in Canada for tax purposes​

[Shakib]: Your residency status for income tax purposes is different from your immigration status. 

Your residential ties and the duration of your stay in Canada determine your residency status.

You are one of the following types of residents for income tax purposes:

• A resident if you have significant residential ties with Canada, regardless of the number of days spent in Canada.
• A deemed resident if you do not have significant residential ties with Canada, but:
  • you stay in Canada for 183 days or more in one calendar year, and
  • you are not considered a resident of your home country under the terms of a tax treaty between Canada and that country. To find a tax treaty, go to canada.ca/cra-tax-treaties.
• A non-resident if you stay in Canada for less than 183 days during the year and you do not have significant residential ties with Canada.
• A deemed non-resident, meaning that you have significant residential ties with Canada but are considered a resident of another country with which Canada has a tax treaty.

Now, are you able to determine your residency status? Let’s take a closer look.

Slide 9 - Determining your residency status – Resident ​

[Shakib]: When determining your residency status as an international student, you establish significant residential ties with Canada if you:

• rent a room, a house, or an apartment
• have utility bills, such as electricity, gas, phone and Internet
• have a job
• open a Canadian bank account or apply for a credit card
• buy a car or furniture
• have a Canadian driver’s licence
• have health insurance with a Canadian province or territory.

Slide 10 - Determining your residency status – Non-resident ​

[Shakib]: On the other hand, you have not established significant residential ties with Canada if :

• You return to your home country on a periodic basis or for a significant amount of time in the calendar year.
• You move to another country when not attending school in Canada. This is different from taking a vacation in another country.
• You don’t have a permanent place to live in Canada or give up your apartment or room.
• You don’t have personal property in Canada or get rid of your belongings, such as your furniture or car.

If you need help to determine your residency status for tax purposes, you can fill out Form NR74, Determination of Residency Status, and send it to the address on the form. The CRA will give you their opinion about your residency status.

For more information on determining your residency status, go to canada.ca/new-to-canada.

Slide 11 - Frequently asked question 1​​

[Shakib]: Throughout the presentation, I will go over some common questions we get.

The first question is: I came to Canada to attend university, and I don’t work or have an income. Do I need to do my taxes?  

The answer is: If you determine you are a resident of Canada for tax purposes, it’s important to do your taxes and report your income even if it was zero. The CRA needs this information to calculate your benefit and credit payments.

Slide 12 - Frequently asked question 2​

[Shakib]: Let's examine this situation.

The question is “Am I a resident of Canada for tax purposes if…?  

• I’m on a study permit and a full-time student.
• I live in a room on campus.
• I work 20 hours per week at the campus cafeteria.
• I pay monthly gym fees.
• I have a bank account in Canada.
• I pay a monthly fee for a Canadian phone number; and
• I go back to my country during holidays to visit family and friends.

The answer is: Based on the information provided, you would be considered a resident of Canada for income tax purposes and should do your taxes.

Slide 13 - Work while you study​

[Shakib]: As an international student studying in Canada, you may be asking yourself these questions:

• Am I eligible to work in Canada?
• Do I need a work permit?
• When, where, and how much can I work?

Immigration, Refugees and Citizenship Canada, also known as IRCC, will be able to answer your questions.

For more information, visit canada.ca/work-international-student.

[Visual]: Two individuals wearing glasses and aprons are smiling at the camera.

Slide 14 - Social insurance number (SIN)​

[Shakib]: To work in Canada, receive benefits and services from the government, and do your taxes, you need a social insurance number, also called a SIN.

A SIN is a nine-digit identification number unique to you. You are the only person who is supposed to use it and you are responsible for keeping it safe. If your SIN gets into the wrong hands, it could lead to fraud or even identity theft.

You will need to give your SIN to your employer when you start a job and to your bank when you open an account. They are responsible for protecting your personal information. They use your SIN to send information about your income to the CRA.

You also need to provide your SIN to government agencies or departments to access a benefit or service.

Finally, you will also need to give your SIN to your school’s administration so they can issue Form T2202, Tuition and Enrolment Certificate, which you will need to claim the tuition tax credit.

The federal organization that issues SINs is Service Canada. You can apply for a SIN online, by mail, or in person.

For more information on the SIN, go to canada.ca/social-insurance-number or call 1-866-274-6627.

Slide 15 - What to do if you do not meet the eligibility criteria for a social insurance number (SIN)​

[Shakib]: If you or your spouse or common-law partner don’t meet Service Canada’s eligibility criteria for a SIN, you can still do your taxes and apply for some benefits and credits with the CRA.

To do so, send us your tax return or benefit and credit application with a note explaining why you or your spouse or common-law partner cannot get a SIN.

Along with the note, include a photocopy of any documents that prove your identity or that of your spouse or common-law partner.

This document could be a:

• passport
• driver’s licence
• proof of birth, or
• any document issued by Immigration, Refugees and Citizenship Canada such as a study permit or a temporary resident permit.

The CRA will then give you a temporary tax number that you can use until you get your SIN. You can use it on your application forms and on your income tax and benefit return.

It is important to use the same first and last names in all your interactions with the CRA.

If you have more than one first or last name, make sure you always use them in the same order.

If you have only one name, whether it is a first name or a last name, you should enter it as a last name. This will ensure that it is recognized correctly in the CRA’s systems.

Slide 16 - Do you have to complete an income tax return?​

[Shakib]: Now that we’ve explained how you can determine your residency for tax purposes, let's discuss reasons why you would have to do your taxes.

File a return:

• if you have to pay tax
• if you want to receive a tax refund ; or
• if you want to receive benefit and credit payments that you may be eligible for.

When you do your taxes, you are filing for the calendar year, January 1 to December 31.

For the first year that you’re a resident of Canada for income tax purposes, your total income should include your income from all sources from the date you entered Canada to December 31 of that year.

For example, if you arrived on June 1, you must report income received from June 1 to December 31.

The deadline to do and pay your taxes for the previous calendar year is generally April 30 every year.

[Visual]: An individual with long hair is using a laptop.

Slide 17 - Total income​

[Shakib]: To do your taxes in Canada, you need to understand your total income.

Your total income includes your income from all sources inside and outside Canada.

You can receive many different types of income. Employment income includes income from your job, such as tutoring or working on or off campus.

Your total income also includes any tips or gratuities you receive from your job and any bursaries or grants you receive for your studies or research.

Note that in Canada, some sources of income are non-taxable and do not have to be reported on your taxes.

Non-taxable income includes payments for the goods and services tax/harmonized sales tax credit, commonly called the GST/HST credit, and the Canada child benefit. Money or gifts from family members are also non-taxable.

For more information, visit canada.ca/taxes-get-ready.

Slide 18 - Frequently asked question 3​​

[Shakib]: Question: I am an international student studying in Canada and my spouse lives overseas. I know I must do my taxes but does my spouse?

The answer is: If your spouse is a non-resident for income tax purposes and has no income from Canadian sources, they do not have to do their taxes in Canada.

However, the CRA may ask you for your spouse’s world income if you are applying for benefit and credit payments, such as the Canada child benefit. This information is only needed to calculate the amount you’re entitled to receive.

Slide 19 - Learn about the benefit and credit payments you may be entitled to!​​

[Shakib]: If you are a resident or deemed resident of Canada, you may be eligible for benefits and credits. Non-residents or deemed non-residents of Canada are not eligible.

In most cases, a benefit is a payment you receive regularly. You can usually apply for a benefit at any time in a year using the appropriate forms.

Credits are something you can claim when you do your taxes. They reduce the amount of tax you owe.

These benefits and credits include:

• the GST/HST credit
• the Canada child benefit
• the disability tax credit
• the child disability benefit
• the Canada Carbon Rebate, and
• the tuition tax credit

Applying for some of these will also register you for related provincial or territorial payments.

For more information on benefits and credits, visit canada.ca/child-family-benefits.

[Visual]: Two individuals are sitting on a sofa and smiling at each other. One person is holding a tablet and there is a notebook, papers, pencils, post-its, and a mug on table in front of them.

Slide 20 - GST/HST credit​​

[Shakib]: Have you noticed that when you buy goods or services, the merchant charges you a federal tax, the goods and services tax or GST, and a provincial tax, the harmonized sales tax or HST. In the province of Quebec, the provincial tax is called the Quebec sales tax or QST.

The GST/HST credit is a tax-free payment for people with low and modest incomes. It helps offset the GST and HST paid on goods and services.

The payment is issued four times a year, around the fifth of July, October, January, and April.

If you are entitled to receive the GST/HST credit, you could start receiving up to $519 per year.

There is no need to keep your receipts from all the things you purchased to receive the GST/HST credit.

If you sign up for direct deposit, you’ll get your benefit and credit payments the day they are issued—no waiting for a cheque in the mail!

For more information on the GST/HST credit, visit canada.ca/gst-hst-credit.

[Visual]: An individual using their laptop outside on a table.

Slide 21 - Canada Carbon Rebate (CCR)​​

[Shakib]: As an international student, you may be eligible for the GST/HST credit and the Canada Carbon Rebate, or CCR for short, as soon as you arrive in Canada.

Like the GST/HST credit, the CCR is tax-free. It is paid to help individuals and families offset the cost of federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.

You don't need to wait to do your first tax return before you start receiving these payments.

To apply, complete Form RC151, GST/HST Credit and Canada Carbon Rebate Application for Individuals who Become Residents of Canada.

The form asks you to report any income you earned outside Canada.

It’s important to report your income, even if it was zero, because the CRA needs this information to calculate your payments.

You only have to apply in the year you became a resident of Canada. After that, the CRA will use the information from your tax returns to calculate the amount you are entitled to.

[Visual]: An individual filling out forms at a table.

Slide 22 - Tuition tax credit​​

[Shakib]: If you are a resident or deemed resident of Canada, you may be eligible to claim some non-refundable tax credits such as the tuition tax credit.

These tax credits reduce any income tax you may have to pay. However, if the total of these credits is more than your federal income tax, you will not get a refund for the difference.

To claim the tuition tax credit, include the information from Form T2202, Tuition and Enrolment Certificate, when you do your taxes.

Your educational institution should provide you with this form by the end of February each year.

If you don’t have a taxable income, or no income at all to report, you should still include your tuition fees on your tax return so that you can either

• carry forward your unused amount, or
• transfer part of it to an eligible family member.

For more information on the tuition tax credit, including how to transfer credits or use those from a previous year, visit canada.ca/deductions-credits-expenses.

[Visual]: Screenshot of Schedule 11, Federal Tuition, Education, and Textbook Amounts and Canada Training Credit.

Slide 23 - Use the Benefits Finder and the online calculator

[Shakib]: You can use the online Benefits Finder to find out what benefits you may be eligible for.

Answer a few questions and the finder will generate a list for you.

To use the finder, visit canada.ca/benefits-finder.

You can also use the CRA calculator to see how much you could get in child and family benefits.

To use the calculator, visit canada.ca/child-family-benefits-calculator.

[Visual]: Icon of a blue calculator.

Slide 24 - Underground economy​ ​

[Shakib]: Moonlighting, working for cash, and working under the table are all terms used to describe the underground economy. These terms refer to the act of not reporting income for income tax and GST/HST purposes.

Not reporting income is tax evasion. Evading taxes is illegal and can result in severe consequences, such as penalties, fines, and criminal convictions.

Evasion can include income not reported or under-reported from:

• tips and gratuities
• employment
• money earned from ride-sharing, or renting out a room in your home
• gift cards received for work done
• cash payments for goods or services, and
• bartering, which is the exchange of goods, or services for other goods or services without using money.  

Generally, any income you earn is taxable and you must report it on your tax return, even when you don’t receive a T4 slip.

A few dollars of unreported income may not seem like a big deal, but collectively they amount to billions of dollars lost that are needed to fund public services in your community.

So be part of the solution! Know how to avoid the underground economy.

When you are employed, ask for your T4 slip and make sure you are on the payroll of your employer so that you can benefit from a workers compensation program and from Employment Insurance when you need it.  

Always get a written contract or receipt when you buy goods or services, so that you are protected if something goes wrong, and you want a refund.

[Visual]: An individual in a yellow shirt writes on paper with a pen.

Slide 25 - Ways to do your taxes​

[Shakib]: There are a few ways to do your taxes.

The fastest and easiest way is to do them online. If you are eligible, you can use certified software. Options include online, downloaded, or installed on your computer, mobile, or tablet.

Certified software can even be free. The software guides you through the process, calculates everything and helps make sure you don’t miss out on any benefits, or credits.

If you have a modest income and a simple tax situation, a volunteer may be able to do your taxes for you at a free tax clinic.

You can also get help from a family member, a friend, or a tax preparer.

Finally, you can do them on paper by downloading a tax package for your province or territory, filling out the forms on computer or by hand and mailing them to the CRA.

To find out more, visit canada.ca/taxes-get-ready.

Slide 26 - Free tax help​

[Shakib]: As I mentioned, you may be able to get your taxes done by a volunteer for free.

The program is called the Community Volunteer Income Tax Program. In Quebec, it’s known as the Income Tax Assistance – Volunteer Program.

You’re eligible to have your taxes done through the program if you have a modest income and a simple tax situation.

Generally, a modest income is less than $35,000 for a single person and less than $45,000 for a couple.

Your tax situation is simple if, for example, you have neither a small business nor income from a rental property.

Tax clinics run all year, but, most clinics are offered in March and April. Many secondary and post-secondary institutions across Canada already host their own clinics.

If your educational institution is interested in hosting or if you are interested in volunteering, reach out to us!

For more information or to find a clinic, go to canada.ca/get-tax-help.

[Visual]: Icon for the Community Volunteer Income Tax Program. Three icons of people all in different colors arranged inside a circle with their arms touching. Off to the right of the circle it is written: “People helping people.”

Slide 27 - My Account for individuals​

[Shakib]: Once you do your taxes for the first time and receive your notice of assessment, you can register for the CRA’s My Account.

My Account is a secure portal that lets you manage your tax and benefit affairs online quickly, conveniently, and securely.

Along with doing your taxes every year, you must keep your personal information up to date to keep getting benefit and credit payments.

This includes your address, your marital status, the number of children in your care and your direct deposit information. You can update all this information yourself in My Account.

You can also:

• Track your refund, view, or change your return.
• View your mail online, such as your notice of assessment.
• Check your benefit and credit payments and statements.
• View any uncashed cheques, and more.

For more information or to register for My Account, go to canada.ca/my-cra-account

[Visual]: Screenshot of the My Account overview page online.

Slide 28 – Frequently asked question 4​

​[Shakib]: Here’s a question we often get about registering for the CRA’s My Account.

Why am I receiving an error message when I try to register for the CRA’s My Account?

The answer is that you can only register for the CRA’s My Account once you have done your taxes for the first time and have received your notice of assessment.

Slide 29 - Need help?​

[Shakib]: The CRA needs your permission to deal with another person, such as a family member, friend or an accountant, who may act as your representative for income tax and benefit matters.

The Form AUT-01, Authorize a Representative for Offline Access, allow you to authorize a representative to have access to information regarding your accounts only by phone, by mail, by fax, and in person.

You can also add a representative to your account under "Authorized representative(s)" from the "Profile" section in My Account. This does provide online access. This is useful when your representative wants to submit documents electronically for you.

Make sure to choose someone you can trust! You don’t need to authorize someone as a representative if that person is only doing your taxes.

Slide 30 - Want to learn more about taxes?​

[Shakib]: Want to learn more about taxes in Canada?

Try out our free interactive tool called “Learn about your taxes.”

It is a self-directed online learning tool that takes you through starting your first job, doing a basic tax return, understanding the purpose of taxes, and more.

Throughout the lessons, you will find videos, definitions, links to resources, examples, and quizzes to test your knowledge.

Check it out at canada.ca/learn-about-taxes.

[Visual]: Screenshot of the Learn about your taxes landing page on canada.ca.

Slide 31 - Be scam smart!​

[Shakib]: You should always be cautious if you receive communication that claims to be from the CRA.

It is possible to receive a direct communication from the CRA. We may, for example, need to provide you with information about your account or ask you to clarify something you’ve shared with us.

We will not ask you for your bank account, credit card, or passport numbers, or use threats or intimidation tactics.

Scammers often attempt to imitate the CRA to try to steal your personal information. They may target you by telephone, text, instant messaging, email, or mail.

Here’s how you can be scam smart:

• Never be afraid to question why the CRA needs your personal information.
• When in doubt, check My Account to see if you have mail or any amount owing.
• You can also call the CRA to check on communications.
• If you’re still in doubt – delete, delete, delete!

[Visual]: Black exclamation mark in a yellow triangle, and text saying “Some scams are easy to spot. Some are not.”

Slide 32 - Thank you!​

[Shakib]: We’ve reached the end of our webinar.

For more information on any of the topics discussed today, visit canada.ca/taxes-students.

We also encourage you to visit our Upcoming Events page at canada.ca/cra-outreach-events to view past recordings and register for upcoming webinars.

If you can’t find what you’re looking for online, you can call the CRA at 1-800-959-8281.

If you are deaf, hard of hearing, or have a speech impairment and are registered with Canada Video Relay Service, you can call the CRA at 1-800-561-6393.

Stay connected by following us on social media: we are on X, Facebook, YouTube, LinkedIn, and Instagram.

We hope it was helpful! Thank you for joining us and enjoy your day!

[Visual]: Social media logos: X, Facebook, YouTube, LinkedIn, Instagram