Money Matters

AN ESTIMATE OF EXPENSE

Students may obtain one-year "ESTIMATE OF EXPENSE" from International Student Services (ISS) in order to secure foreign exchange from their home country. These letters provide tuition and living costs for the average student. Before you go to Immigration you will have made sure that sufficient funds are available to cover all your academic and living expenses. It is common to transfer large amounts of money through your local banks or get a bank draft. As it takes a week to 10 days to cash a large bank draft, it is advisable to keep some cash and travelers' cheques on hand to pay for local transportation, meals, temporary accommodation, etc., during your first week in Canada. What follows is a series of estimates on various budget items. Naturally, costs vary with the individual. Therefore, a range is given (as in apartment costs): the lower figure representing the absolute minimum; the higher figure, the maximum cost that is reasonable for a student to pay. When figuring your expenses, remember Immigration requires proof of adequate funds for the full twelve-month period (summer included).

MARRIED STUDENTS

Married students should estimate at least $4000 in additional expenses if the spouse is not a student. Note: The spouse of an international student is permitted to work in Canada and the Work Authorization can be obtained in Canada (for spouse). However, you should be aware that jobs are very few and competition is heavy. Allow an extra $1500 for each child. If you are thinking of bringing your family with you, we strongly advise that, initially, they do not accompany you. We suggest you arrange for them to come at a later date, after you have familiarized yourself with life in Canada and are satisfied that enough money is available to support them.

MONEY TO TRAVEL WITH

While making plans to study in Canada, you should become familiar with the regulations of your home government regarding currency restrictions and transfer of funds. Most governments restrict the amounts of money that can be taken out of the country and require special documentation before the money can be released. You should learn before leaving home, what documentation is needed to ensure the transfer of funds (if necessary) during your stay in Canada. You should have at least $100 (Canadian or U.S.) for initial traveling expenses.

TRANSFER OF FUNDS

If you plan on transferring money to Canada, consider Cable Transfer.

CABLE TRANSFER

Have your bank at home wire money to one of the following Canadian Chartered banks at least a week before you travel to Canada. The funds will be held at the bank until you arrive. Upon arrival, you can then open an account at that bank and then deposit the money into your new account. A passport and a photo ID will be required to open the account. 

BANKING MACHINES

A bank card allows you to use many automatic- banking machines (usually called "Instant Tellers"). Instant Tellers may be used for deposits, withdrawals and payment of utility bills during and after normal banking hours as well as on weekends. When you apply for a bank account, ask the bank teller to show you how to use the Instant Teller. Remember you do not have to use an Instant Teller, because all transactions can be conducted with the assistance of a bank teller, but only during the business hours. The Canadian Imperial Bank of Commerce (CIBC) has several Instant Tellers on campus.

BANKING

It is advisable to open an account at a bank near nearby shortly after your arrival in Canada. Banks also handle the sending or receiving of money from overseas, money orders, travellers' cheques, changing over currency, etc. Persons on Study Permits are not offered loans for the purchase of large items such as automobiles and furniture. Talk to a bank representative about the types of accounts and costs of each account and the interest they pay, to help you decide what is best for you.

What should you bring with you to take a bank account?

FINANCIAL AID

Canada student loans and provincial assistance programmes are not available to international students. Therefore, you must ensure that you have secured financial support, from home or elsewhere, for the duration of your studies prior to arrival in Canada. A new resource offering financial-aid information to international students may be found at http://www.iefa.org.

INTERNATIONAL STUDENTS' BURSURY

A Bursary is a financial 'gift' to students who can demonstrate financial need. To be eligible for the International Students' Bursary Programme, you must be a fulltime, upper level, undergraduate student, registered in at least 60% course load for each academic term in the most recent fall/winter session; you must demonstrate financial need and must be in good academic standing. The Programme is funded through donor contribution and tuition reinvestment. Bursary funds are limited and are not generally intended to fund a student's full deficit or to be used to financially register for the academic year. Bursaries may range in value depending on the applicant's need and the funds available. Students are normally eligible only one bursary per academic year.

Dates and Deadlines

Fall Term Application - November 1

Winter Term Application - February 14

WELFARE BENEFITS

Most international students studying in Canada cannot claim welfare benefits as this is regarded as "resource to public funds." It is a condition of entry to study in Canada that you have sufficient funds to support yourself, and your dependants, for the duration of your course of study. Any claim for welfare benefits, which are regarded as "public funds," would be in breach of immigration regulations and would jeopardize your right to stay in Canada.

SALES TAX

The Ontario Government sales tax (PST) of eight percent and the federal government's goods and services tax (GST) of seven percent are payable at the time of purchase of all items except food, books, and children's clothing.

TAXATION

As with Canadians, international students are required to complete an "INCOME TAX RETURN" each April for Revenue Canada. You may be required to pay some tax depending on how the amount of your income from scholarships, bursaries and other earned income balances with you expenses. Keep a record of all expenses incurred by you for the period covering the time you left home until you settled in Hamilton, such as air, rail, bus and taxi receipts, as well as the cost of meals, etc. Ask for a receipt if none is offered.

Many international students will find that they are required to complete an income tax form (known as "filing a return or want to do this in order to claim refunds of other taxes. This brochure contains suggestions and reminders. It does not contain all the information you will need. Other important and helpful guides are available from Revenue Canada.

Your status for income tax:

As an international student, Canada Immigration does not consider you to be a resident of Canada. However, your residency status for tax purposes may be quite different.

An international student may be:

In order to know which tax form to use and which deductions and benefits you are eligible for, you must know your status.

Your status is determined based factors such as:

When do I file the tax return?

The deadline is April 30. You will receive information slips used to calculate tax by the end of February.

What information slips will I receive?

Students will receive some or all of the following statements:

Who must file an Income tax return?

You must file a tax return if:

Note: Income from employment is taxable as are scholarships, bursaries and interest income.

If l have no income do I need to file?

You are not required to complete tax forms but you may be eligible for the GST Credit and Provincial Tax Credits (depending on your residency status). To receive this refund, you must file a tax return.

I want to plan my budget for the year How can I learn how much fax I will have to pay?

Call International Tax Services at 1-800-267-5177. (ISA staff are not qualified to give you this information.)

I have to pay income tax In my own country. Does this mean I pay twice?

Canada has tax treaties with many other countries which prevent this. For more information about tax treaties, see the publication "Newcomers to Canada" available at the local Hamilton Revenue Canada or call the International Tax Services Office at 1-800-267-5177.

Where can I get the tax forms and guides?

The basic forms will be available at ISS in February/March. The General Forms and Guide are also available from the post office. You can get the others from Revenue Canada. (See address below)

Where can l get information and help with income tax?

International Tax Services Office Phone toll free 1-800-267-5177

Revenue Canada website: http://www.ccra-adrc.gc.ca

Revenue Canada ( Hamilton Office)

Complete a "Determination of Residency" form (available from ISS) well before the tax deadline and send this to Revenue Canada. You will receive a letter informing you of your status. Keep this and include a copy with your tax return.

Attend the Income Tax Workshop given by staff of the International Tax Services Office. This event, usually held in March, is sponsored by the ISS Offfice (Call for details Ext 24748).

[ back to top ] [ back to ISS main web page ]