CVITP training session on newcomers

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Welcome to Canada International 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 drivers 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)
Arrival date (march 2012)
January 1st
December 31

• 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 Individuals Residency
  Status
• The publication IN-119-V,
• New Residents and Income Tax
• And dont 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.

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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
Income earned while you were not resident in
Canada
Enter your social insurance number
Date of arrival in Canada
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(No Transcript)
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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 income
Box H of your RL-1 slip
Box B of your RL-1 slip
Box G of your RL-1 slip
Box A 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 105207 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 lÉducation, 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 code01 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 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
Code 03
Net amount
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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.

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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)
  7,183.56
• 365 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 credits
Basic 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
59
Tuition or Examination feesSchedule T
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Tuition or Examination fees TP-1
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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 dentente.
• 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
12
6
6
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Premium payable under the Québec prescription
drug insurance plan Schedule K
12
6
6
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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

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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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(No Transcript)
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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

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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.

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Thank you