Taxation

Canada imposes taxes not only on its residents, but also on non-residents who carry on a business in Canada, are employed in Canada or sell property in Canada. The Canada Revenue Agency is the federal government department that administers Canada's federal tax laws. On the provincial level, Alberta Finance administers Alberta's tax laws.

The Canadian federal Department of Finance recently announced a number of tax reductions which will affect individuals, families and businesses. For highlights of the proposed tax changes, please visit:

• Department of Finance

  • Chapter 3: Broad Based Tax Reductions for Canadians

Residence Requirements

Canada imposes taxes on the basis of residency, not citizenship. Residents and non-residents are subject to Canadian tax on income. Canadian residents are subject to taxes on income earned anywhere in the world, whereas non-residents are generally taxable only on income and capital gains earned in Canada. However, there may be relief or reduction of taxation if a bilateral income tax treaty exists between Canada and another country.

Determine if you are a non-resident or resident of Canada for tax purposes:

Canada Revenue Agency

• Individual
• Corporation
• Trusts and estates

Department of Finance Canada

• Canada's tax treaties

Date Updated: Jan 07, 2008
RDP-991