Taxation For New Immigrants in Canada

Taxation For New Immigrants in Canada

Social Insurance Number

As a newcomer to Canada, you will need a social insurance number (SIN). The SIN is a nine-digit identification number that is unique, personal, and confidential. The CRA uses it to identify you for income tax and benefits purposes.

You have to give your SIN to anyone who prepares tax information slips (such as a T4 slip) for you. For recent newcomers, you will need to provide employment and income information prior to your arrival in Canada.


If Service Canada gave you a temporary SIN (starting with the number 9) or if the CRA gave you a temporary tax number (TTN) or an individual tax number (ITN), and you decide to become a permanent resident of Canada, you have to apply for a SIN with Service Canada. 

Once this new SIN has been assigned to you, do not use any other SIN, TTN, or ITN that was previously assigned to you. If you do not already have a SIN, you can apply for one at the nearest Service Canada office.

Corporate Tax Rates

The federal government has been trying to make the country conducive and appealing for business, to that effect the taxes have been reduced and foreign direct investment has been encouraged.

Many will argue that governments should tax corporations higher as they have much more money to spare than individual citizens. However, this view can sometimes harm economies more than it help them.

As a result, factories, research facilities and offices will be created across the country supplying jobs, training, and financial security to many Canadian citizens.

Canadian-US Dual Citizens

An important aspect for Canadian-US dual citizens is that individuals will likely have to file tax returns in both countries. Usually, dual citizens living and working in Canada do not have to pay income tax to the US, as their level of taxation is higher in Canada.

However, it is important for individuals to research and ask questions on this topic if it relates to them. For example, US citizens are required to file an FBAR form if they have assets worth higher than $10,000 outside of the country.

Failure to complete these forms can result in financial penalties.  These American regulations can affect many dual citizens living and working in Canada.

Advantages: Canadians are accepting of tax rates because we can see the direct benefits of our tax dollars. Especially through health services and public schools. Obviously, it can be discouraging when scandals occur with government officials mismanaging their spending at the expense of the taxpayers.


Fortunately, in terms of internal corruption, Canada scores very well on the Corruption Perceptions Index. In general, Canadians trust their government. Canada is a great and safe place to live, start a business and raise a family, no matter your opinion on the tax system.

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