Welcome to CanadaInternational Students

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Presentation objectives

• This presentation is for you if you have left another country or a Canadian province or territory to settle in Québec. It will give you an overview of the Québec taxation system and of the assistance programs available.

• This presentation will also help you to complete your first income tax return as a Québec resident.

• We invite you to visit our website at www.revenuquebec.ca

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Are you a Québec resident?

• For income tax purposes, you are generally considered a Québec resident if you have established sufficient residential ties in Québec.

• You will be considered a resident as of the date of your arrival in Québec,

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Residential ties in Québec?

You have residential ties if, you have in Québec:

• a home in Québec;

• a spouse or de facto spouse and dependants who live with you;

• personal property, such as a car or furniture, and social ties.

• Other ties such as a Québec driver’s licence, credit cards issued in Québec or current bank accounts in Québec, and eligibility for Québec health insurance.

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Québec tax obligations

• Revenu Québec makes sure that all Québec residents pay their fair share of the funding of public services.

• The Québec taxation system is based on the principle of self-assessment. All taxpayers must provide the required information about their income, deductions and credits in order to calculate and pay their share of income tax.

• You must file an income tax return to be eligible for credits, deductions and assistance programs.

• You must fulfill your Québec tax obligations each civil year.

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The Québec taxation system

• The Québec taxation system is similar to the Canadian one and the one of many other countries.

What is an income?

• Income consists of amounts earned or received, such as salaries and wages, commissions, fees, interest, dividends and annuities.

What is a relevé slip?

• An RL slip is an official receipt that you receive annually from a person who paid income to you or to whom you paid an amount. RL slips must be enclosed with your income tax return.

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Who is required to file an income tax return

• An individual who is resident of Québec on December 31 of a taxation year must file a Québec and a Canada income tax return.

• Even if you have no income or no income tax payable, you should file a tax return in order to be entitled to certain assistance programs.

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You must file a Québec income tax return if:

• you are required to pay income tax;

• you wish to claim

• child assistance payment;• Solidarity tax credit;• refund of income tax withheld at source;• tuition or examination fees;

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What is your residency status?

• Resident

• Non-resident

• Deemed resident

You must know your residency status in order to file your income tax return correctly.

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Residents of Québec and Canada

Two distinct periods in the year of arrival

Period of non residence (1)

Period of residence (2)

January 1st Arrival date (march 2012)

December 31

(1) Income earned in Canada only salary, business income (see tax treaty with the country).

Income earned in the country of origin before the date of residence are not taxed in Canada, but must be included in the income tax declaration on line 19.

(2) Worldwide income (regardless of source) must be reported in Canada.

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For more information You may refer to

• Interpretation bulletin IMP. 22-3/R1,

« Determination of an Individual’s Residency Status »

• The publication IN-119-V, « New Residents and Income Tax »

• And don’t forget our website at: www.revenuquebec.ca

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The publication New Residents and Income Tax

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How to file your income tax return

• You must obtain the “Forms” booklet and the “Income tax Guide”.

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How to produce your tax return

•http://www.revenuquebec.ca/en/citoyen/impots/guide/default.aspx

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When to file your income tax return

• If you reside in Québec the 31e December 2012, you must file:

• A provincial income tax return

• And a federal income tax return

• your income tax return must be send by the April 30, 2013.

• Refer to the information on the back of your releve slips to find out on which line of the income tax return you should enter the amounts shown on the slips.

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Releve 1

• See the explanation of boxes and instruction. You will find instructions that refer to the lines of the return

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How to file your tax return?

• Fill in your tax return referring to the guide.

Information are grouped according to the line numbers in the income tax guide.

• Enclose the required schedules.

How to complete your return

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Completing your 2012 Quebec income tax return step by step

• Enter the date of your arrival (or departure) on line 18. In the box on line 18, enter the number from the list below corresponding to your situation:

01 New resident in Canada

02 Temporary stay in Canada

03 Foreign student

07 Other situation (enclose an explanatory note)

• Enter on line 19 the total income that you earned during the period in which you were not resident in Canada.

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Valid address

Enter your social

insurance number

Date of arrival in Canada

Income earned while you were not resident in

Canada

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Completing your 2012 Quebec income tax return step by step

• You must report your world income from the date of your arrival up to December 31, 2012.

• Amounts earned in foreign currency, must be converted in Canadian dollars.

• Different rules apply if you spent less than 183 days in Québec and have not establish residential ties in Québec. For more information, contact our services.

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RL-1 slip Employment income

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Back of the RL-1 slip

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Employment income

• On line 101, enter your total employment income, as shown in box A of your RL-1 slip.

• On line 98, enter the amount shown in box B of your RL-1 slip.

• On line 98.1, enter the amount shown in box G.

• On line 97, enter the amount shown in box H

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Total incomeEmployment incomeBox H of

your RL-1 slip

Box A of your RL-1

slip

Box B of your RL-1

slip

Box G of your RL-1

slip

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Foreign researchers on a post-doctoral internship

• Enter the amount from box A of your RL-1 slip on line 101.

• Enter the result of the following calculation on line 297:

• the amount from box A-11 of your RL-1, minus

• the total amount from lines 105+207 of your return

• multiplied by the exemption rate shown in box A-14 of your RL-1 slip.

• Enter “05” in box 296.

• Keep the certificate issued to your employer by the Ministère de l’Éducation, du Loisir et du Sport.

{

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Taxable income Foreign researchers on a post-doctoral internship

Code 05

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Deduction for workers

• Ligne 201

• To calculate your deduction , complete work chart 201.

• You may claim a deduction equal to 6% of your eligible earned income (line 101).

• The maximum deduction is $ 1,075.

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Work Charts 201

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RL-1 slip Scholarships

RB

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Scholarships and bursaries (box O of the RL-1 slip identified by code “RB”)

• Enter the total amount of your scholarships, bursaries or similar financial assistance on line 154.

• Enter code“01” in box 153.

• You will not pay income tax on this amount, since you may claim a deduction on line 295.

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Total income Scholarships

Code 01

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Taxable income (Scholarships)

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RL-1 slip Research grants

RC

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Research grants (box O of the RL-1 slip identified by code “RC”)

• To calculate the net amount of research grants:

• Subtract the expenses incurred from the amount shown in box O of your RL-1 slip;

• Carry the result to line 154.

• Enter “03” in box 153:

• Enclose a detailed statement of your expenses.

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Research grants (box O of the RL-1 slip identified by code “RC”)

Allowable ExpensesAllowable Expenses;

• Travelling expenses, including transportation, meals and lodging, in respect of field trips related to his work.

• Expenses incurs in the course of the research such as, rental, research assistants, etc.

Expenses incurred in the year, the year before and the year after, you received the grant

• Must not exceed the total taxable research grants

• Consult interpretation bulletin IMP. 312-1/R1.

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Total income Research grants

Net amountCode 03

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Moving expenses

• An international student can claim moving expenses if he or she:

• is enrolled in a post-secondary program as a full-time student; and

• received a research grant after moving to Canada (the deduction is limited to the net amount of the research grant line 154).

• To calculate the deduction that you may enter on line 228, complete form TP-348-V, Moving Expenses.

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Net incomemoving expenses

Moving Expenses

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International students and moving expenses

• For further information on moving expenses, consult interpretation bulletin

• IMP. 348-1, Moving Expenses.

Tax credits

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Non-refundable tax credits

A tax credit is an amount granted to a taxpayer on the basis of his or her tax profile and family situation in order to reduce his or her income tax payable.

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Non-refundable tax credits

•Non-residents may not clam the non-refundable tax credits

•Immigrants, emigrants and deemed residents can claim non-refundable tax credits provided under lines 350-397

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Non-refundable tax credits

• In general, the year of your arrival or of your departure from Canada, you must reduce certain amounts used to calculate your non-refundable tax credits in proportion to the number of days you were resident of Canada;

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Non-refundable tax credits

• For example, arrived in Canada May the 6, 2012:

240 days in Canada x $10,925 (line 350) = $7,183.56365 days in the year

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Non-refundable tax credits Exception

You may claim your non-refundable tax credits in full if:

• you have no income for the part of the year you were not resident in Canada; or

• you earned more than 90% of your income in Canada for the part of the year you were not resident of Canada.

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Non-refundable tax credits

• Basic personal amount (line 350)

• Amount for person living alone (line 361, Schedule B)

• Medical expenses (line 381, Schedule B)

• Tuition or examination fees (line 384, Schedule T)

• Donations (line 393 to 397)

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Non-refundable tax creditsBasic

personal amount

Basic personal amount

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Person living alone

• To calculate the amount you can claim, complete Parts A and B of Schedule B.

• If, throughout 2012, you maintained and ordinarily lived in a dwelling in which you lived alone or only with one or more persons under the age of 18 years old.

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Person living aloneSchedule B

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Person living alone Schedule B

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Person living aloneTP-1

1 280 00

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Medical expenses

• On line 381, you may enter the portion of your medical expenses that is more than 3% of your family income line 14 of Schedule B.

• To calculate the amount to which you are entitled, complete Parts A and C of Schedule B.

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Medical expensesSchedule B

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Medical expenses TP-1

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Tuition or examination fees

You may claim these tax credits if you are a resident or deemed resident:

• your tuition fees may be indicated on your RL-8 slip.

• complete Schedule T to claim tuition or examination fees.

• carry the result of Schedule T to line 384 of your return,

• Or carry forward for future use

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Tuition or Examination feesRL-8 slip

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Tuition or Examination feesSchedule T

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Tuition or Examination fees TP-1

Income tax and contributions

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Premium payable under the Québec

prescription drug insurance plan

Line 447, Schedule K

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Premium payable under the Québec prescription drug insurance plan

You are not required to pay a premium if :

• you are a foreign national and are not entitled to be reimbursed for the cost of your prescription drugs; or

• you are a French or Belgian national temporarily living in Québec under the Protocole d’entente.

• In those case, check box 59 of schedule K and;

• Enter 12 on line 62 of Schedule K;

• For your spouse, check box 73 and enter 12 on line 76

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Premium payable under the Québec prescription drug insurance plan

Schedule K

66 12

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Premium payable under the Québec prescription drug insurance plan

Schedule K

6 6 12

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Premium payable under the Québec prescription drug insurance plan

• Otherwise, you must complete Schedule K and carry the result to line 447 of your income tax return.

However,

You do not have to complete Schedule K if you are in one of the situations described in paragraphs 14 to 34 of Schedule K

• In this case, enter the number corresponding to your situation in box 449 of your return.

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Premium payable under the Québec prescription drug insurance plan

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Premium payable under the Québec prescription drug insurance plan

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Health contribution line 448

• Deemed resident

• A person who has resided in Quebec more than 183 days in a year, but that usually resides outside of Canada, is not required to pay the health contribution.

• Resident in Québec must pay 200$ for the health contribution if is income on line 275 excide 14 730$

Refundable tax credits

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Solidarity Tax CreditScedule D

New tax credit since the 1er July 2011;

• Replace the QST credit and

• The Property tax refund;

• Complete Schedule D to claim the solidarity tax credit;

• you must be registered for direct deposit

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Solidarity Tax Credit Eligibility

You are eligible if, you meet the following requirements at some point between July 1, 2013, and June 30, 2014:

• You are 18 or older;

• You are resident in Quebec,;

• You are a Canadian citizen, a permanent resident or;

• You are a temporary resident who has been resident in Canada for the preceding 18 months.

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Solidarity Tax Credit

• To claim the solidarity tax credit;

• Complete Schedule D and file it with your income tax return;

• The Ministère du Revenu will advise you of the amount of your tax credit.

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Solidarity Tax Credit July 2011-June 2013

• If you meet the requirements to request the solidarity tax credit between July 2011 and June 2013, you must:

• File your income tax return 2010 and 2011

• Complete Schedule D 2010 and 2011

Avoid double taxation

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Tax treaties

•If you earned income abroad during your period of residence:

•You may claim a deduction for income exempt under a tax treaty on line 297.

• Enter “12” in box 296.

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Deduction for income exempt under a tax treaty

Code 12

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Foreign tax credit

•You may claim a foreign tax credit on line 409 of Schedule E

•To calculate the tax credit to which you are entitled, complete form TP-772-V, Foreign tax credit, for each of the countries to which you paid income tax.

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Foreign tax credit

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Schedule E, line 409

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Income tax and contribution

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Filing deadlines

• Your income tax return for 2012 must be filed by April 30, 2013.

• If you earned business income, you have until June 15, 2013, to file your return.

• Any balance due of income tax for 2012 must be paid by April 30, 2013 whether you earned business income or not.

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To contact us

• We invite you to visit our website at

www.revenuquebec.ca

514-864-6299 or 1-800-267-6299 (toll free)

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Volunteers can help you 

• Offered in partnership by Revenu Québec and the Canada Revenue Agency

• To find an organization that host Volunteer tax preparation clinics near you, visit the Canada Revenue Agency at Community Volunteer Income Tax Program.

Thank you