The taxation system for Ukrainians in Canada

Ukrainians who move to Canada for work, study, or immigration are often interested in the taxation system in this country.

The Canadian tax system is complex, but at the same time transparent and efficient, giving citizens access to a wide range of services and infrastructure.

Canada has a two-tier system of taxation, which provides for the payment of both federal (common for the entire country) and provincial taxes (the amount of the tax rate depends on the province).

It is important to have an understanding of the main elements of the taxation system in Canada at the first stage of familiarization, so as not to face problems in the legal field in the future.

For Ukrainians moving to Canada to conduct commercial activities there, and obtain permanent residence, the following key aspects of the taxation system in this country are relevant (in particular, in the province of Ontario, which is most often chosen by citizens when moving):

• Income tax (federal and provincial). This is a mandatory payment that a person pays to the state every year from his income. The tax rate depends on the total income and can be equal to 33% for 202,802 USD (federal), 13.16% for 220,005 USD (provincial);
• Tax on goods and services. It is paid for most goods and services. In Ontario, this tax is 13%: 5% federal + 8% provincial;
• Property tax. Property owners in Canada pay this tax once a year. The amount of tax in each situation depends on the location and valuation of the individual property;
• Corporate income tax. Federal tax: 10% for small businesses; and 28% for large corporations. Provincial tax (Ontario): 4.5% for small businesses; 11.5% for all other companies.

Pay attention:

• Provincial taxes do not apply if the annual income is less than 15,087 USD.
• Federal taxes do not apply if annual income is less than $11,635.
• Any income earned before a person becomes a permanent resident of Canada is not taxed.

As you can see, the taxation system in Canada is complex and quite complex. Lawyers of Prikhodko and Partners law office offer clients detailed legal advice related to the taxation system in Canada, to determine tax rates for a specific client depending on his situation.

Currently, for Ukrainians moving to Canada, there is also the possibility of receiving tax social benefits. It is important to note that to receive the relevant benefit, everyone needs to obtain a social security number and fill out a tax return, based on the analysis of the information the Canadian Tax Service will conclude the possibility of receiving benefits and social payments for Ukrainian immigrants, which are not subject to taxation. Correctly filling out all the necessary forms, preparing a tax return, and sending any requests/official appeals to the Canadian Tax Service – these are the services that the qualified lawyers of “Prykhodko and Partners” JSC are ready to offer to solve urgent issues.

Citizens of Ukraine in Canada have the right to receive:

• Canada Child Benefit– payment for assistance to newly arrived families to raise children under 18 years of age;
• Provincial/territorial programs– relevant tax incentive programs that exist in each province of Canada.

Conclusions.

Canada has a complex but transparent and efficient taxation system that provides access to a wide range of services and infrastructure for citizens.

Understanding the taxation system in Canada is an important stage for Ukrainians who intend to move or already live in this country, for effective financial management and use of available resources.

In our company, clients will receive professional legal assistance, including filling out tax returns and obtaining tax social benefits in Canada.