On July 1, 2010, the Harmonized Sales Tax (HST) comes into effect in ONtario. The five percent federal Goods and Service Tax (GST) is being combined with the eight percent Provincial Sales Taxx (PST) to create a single 13 percent HST.
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 your 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"). You may be able to claim refunds of other taxes after completition of the income tax form. 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 is quite different. Canada Revenue Agency sees you a resident of Ontario, Canada.
When do I file the tax return?
The deadline is April 30, every year. ISS e-mails all students to show up for a presentation, followed “tax clinics”. Knowledgeable accountants volunteer to do taxes or guide students on how to fill an online form, using their online software.
What information slips will I receive?
Students will receive some or all of the following statements:
· T2202 - tuition fees paid (deductible from income) and months of full-time study (used to calculate a deduction called the "education amount''. This can be obtained from MUGSI.
· T4 - employment income and deductions (if applicable)
· T4A - scholarships and bursaries (if applicable)
Q: I have to pay income tax in my own country. Does this mean I pay twice?
A: Canada has tax treaties with many other countries which prevent this.
For more information about tax treaties, visit Revenue Canada Agency or call the International Tax Services Office at 1-800-267-5177.