Filing your first Canadian tax return as a newcomer
For most newcomers, Canadian tax residency starts on the day you arrive to live here. Your first return covers the part of the year after that date and is due April 30 of the following year (June 15 if you are self-employed, though any tax owed is still due April 30). Don’t wait to file to get benefits: apply for the GST/HST credit with Form RC151, or the Canada Child Benefit with Form RC66, soon after you arrive.
What to report
On your first return you report your worldwide income from the date you became a resident. Income you earned before you arrived is not taxed in Canada, but the CRA asks for it on your benefit applications and first return so it can work out your credits and benefits.
Convert foreign income to Canadian dollars using the Bank of Canada exchange rate for the day you received it, or an average rate for income received through the year.
Apply for benefits early
New residents without children apply for the GST/HST credit (renamed by the CRA as the Canada Groceries and Essentials Benefit) with Form RC151. Families with children under 18 use Form RC66, which also covers the credit. You do not need to have filed a return first.
Foreign property (Form T1135)
Canadian residents must file Form T1135 when the total cost of their specified foreign property, such as bank accounts, shares or rental property outside Canada, is more than $100,000 at any time in the year. You do not have to file it for the year you first become a resident, but you will need to from the following year.
Tips
Get a Social Insurance Number first, and register for CRA My Account so you can see your benefits, TFSA room and RRSP room. File every year, even with little income: many benefits depend on it.
Do I pay Canadian tax on savings I bring with me?
Generally no. Money you saved before becoming a resident is not income. Interest, dividends or rent it earns after you become a resident is reported in Canada.
Do I have to report my Hong Kong bank account?
If the total cost of your foreign property is over $100,000, yes, on Form T1135, starting the year after you become a resident. Interest it earns after you arrive is also taxable.
Official sources
- CRA: newcomers to Canada
- CRA: questions and answers about Form T1135
- CRA: Canada child benefit, before you apply
Canada Child Benefit for newcomers · TFSA, RRSP or FHSA first? · All newcomer & student guides