Personal Tax Services

Personal/individual tax services in Montreal

Personal/individual taxes:

Preparing tax returns

For good economic and social development, it is essential that citizens pay their taxes. The taxes collected are used to feed the state budget. This authority uses them for the general interest, to cover public charges. What are the taxes for individuals?

Taxes for employees

People who work in a company must pay taxes. That is why there are the concepts of gross salary and net salary. The calculation of taxes is usually indicated in each employee's payslip. If there is something that is not clear, each employee has the right to make claims or request explanations from the company's human resources manager. If there was an error in the calculation of taxes, the human resources manager will do what is necessary to ensure that everything is in order.

Taxes for employees cover part of the Generalized Social Contribution (GSC) which is for the financing of social protection accounts.

In addition to the GSC, there are also social reduction contribution taxes (CRDS). In other words, the employee participates in the reduction of the debt of the social security.

The calculation of the levies is based on 98.25% of the gross salary. The fact is that a 1.75% deduction is levied as a professional expense before any calculation of taxes.

It should be noted that all benefits in kind, premiums and allowances are still subject to tax levies.

Taxes for students

Many students work to finance their studies. When should you then report your income?

It is necessary to file a tax return when you are an adult, especially when you start working small jobs. This allows you to be perfectly in good standing with the tax authorities.

If you receive child support or want to be attached to your parents' tax home, a tax return is essential.

If you have no help for your parents and you support your parents on your own, you file your tax return without the possibility of attaching to your parents' tax home.

If the student supports himself and his annual income is less than 7,570 dollars, he will be exempt from taxes.

If the student receives alimony, the tax is levied based on 3,200 dollars gross.

Under a student occupancy contract, the tax deduction is based on 2,660 dollars gross.

Scholarships for research are also to be declared.

Taxes for newcomers to Canada with WHV

With a working holiday program, it is possible to visit Canada while working here for a certain period. The student who obtains this visa can enjoy an unforgettable holiday in Canada, do researches for the writing of a dissertation... At the same time, he will be able to work for pocket money or to finance his studies.

Since the student works in Canada tax returns must be filed here. The Canadian government benefits from taxes for those who work in this country, even under a WHV.

The Canadian government collects taxes according to the principles of self-assessment. The tax year is like the calendar year and runs from January 1. to December 31. The tax return is from January 1. of the current year to April 30 of the following year. After this period, it is still possible to declare taxes, but in this case the taxpayer must pay an additional amount as a penalty.

For a student with a Working Holiday Visa who works for a certain period in Canada, it is essential to pay income tax.

Income tax is different from one taxpayer to another one. A person who earns a lot pays a lot according to a set percentage grid for taxes. Another who earns little will pay little.

However, an overall calculation is made at the end of the year. For people who have paid above the specified threshold, they are entitled to a refund. Those who have not reached the only one suitable for taxes must pay more.

This whole system also applies to students working in Canada as part of a WHV.

Taxation for young professionals

You have just finished your studies and you are entering the professional world. It has not been difficult for you to find a job because you have already done internships. In addition, your skills are reflected in the way you speak and behave at the time of the interview.

So, you are quickly out of the status of a job seeker. You did not stay long on this status, because as soon as you finished your studies, you found a job after a few weeks.

In Canada, new employees are subject to the same taxes as other employees who have worked for years. This includes taxes on the contribution to social reduction.

If you work in Canada, you may be eligible for a young professional licence. Not cumulative with a working holiday or WHV program, the JP permit allows you to work in Canada even if you are not studying there.

The duration of the Young Professionals permit depends on the length of your work. However, it cannot exceed 24 months. If you want to work in Canada for a long time, you will need to do what is necessary to become a resident and thus enjoy all the benefits of citizens who work in the territory.

Young Professionals taxes in Canada include income tax, plus certain taxes on in-kind benefits. It is necessary to declare income to be in good standing regarding the tax authorities.

For more information, please contact JKB Services.