The Social Insurance Number (SIN) and your first tax return in Canada
Translated from the Arabic original. Read in Arabic
One of the first things to do after arriving in Canada is to get a Social Insurance Number (SIN). One of the most important things in your first year is filing a tax return, because many benefits are not paid without it.
What is a SIN?
A nine-digit number issued by Service Canada that you need to work in Canada and to access government programs and benefits. Permanent residents and eligible temporary workers and students apply online or at a Service Canada office with their status document or work permit. Give your number only to your employer, your bank and the tax authority, and do not share it with anyone else, because it is a key to identity theft.
Why file a tax return even with no income?
In Canada many benefits are calculated from your tax return. The Canada Child Benefit, the GST/HST credit and some provincial benefits all require you to file every year, even if your income was low or zero. Newcomers who do not file can lose money they are actually entitled to. Tax returns are also a requirement when you apply for citizenship later.
Deadlines
The Canadian tax year is the calendar year. The deadline for most individuals is 30 April of the following year. Self-employed people have until 15 June to file, but any tax owed must be paid by 30 April to avoid interest.
Your first return as a newcomer
In the year you arrive, you state on the return the date you became a resident of Canada and report your worldwide income from that date. If you have children, you can apply for the child benefit before your first return with a special form from the Canada Revenue Agency (CRA). You can file online with CRA-certified software, some of it free.
Free help
If your income is modest and your tax situation simple, the Community Volunteer Income Tax Program (CVITP) offers free help filing your return. Find the nearest clinic on the CRA website.
Common newcomer mistakes
Not keeping receipts for deductible expenses such as child care and moving costs for a new job. Not reporting foreign income after becoming a tax resident. Forgetting to declare foreign property: if the cost of your financial property outside Canada exceeded CAD 100,000 at any time in the year, you must file Form T1135 with your return, and late-filing penalties are significant. Finally, ignoring CRA letters: every official letter needs a reply on time.
This article is general information, not legal or tax advice. Laws change, so check the official sources below or the competent authority for your situation. Found a mistake? Tell us.