Canada taxes residents on worldwide income — the day you establish residency, Canadian taxation begins.
When Does Residency Begin?
Tax residency is established when you have significant ties to Canada: a home, family, personal property, or social ties. The date of arrival is typically your residency start date.
Your First Canadian Return (Partial Year)
In your arrival year, report only income earned from your arrival date. Foreign income before arrival is not included on the Canadian return, but assets held before arrival are valued on arrival day for future capital gains calculations.
Foreign Asset Reporting (T1135)
Foreign assets with total cost of $100,000+ CAD at any point during the year require T1135 filing. Penalties: $25/day up to $2,500 per year, plus 5% of highest value for intentional omissions.
Tax Treaties
Canada has treaties with 100+ countries to prevent double taxation. If you paid taxes in your home country on the same income, claim a foreign tax credit in Canada. Your specific treaty governs which country taxes which income type.
Quebec-Specific Requirements
- File Quebec TP-1 in addition to federal T1
- Apply for Solidarity Tax Credit (housing component is valuable)
- Apply for RAMQ (3-month waiting period for some immigrants)
- Obtain a SIN before filing