Newcomers to Canada and the CRA — Montreal CPA Firm Near You: Taxes, Benefits, Residency Status, and How to Get Started

Arriving in Canada comes with many changes—new systems, new paperwork, and often, a completely new tax system. The Canada Revenue Agency (CRA) is not just the tax collector; it is also the gateway to important benefit and credit payments that can provide real financial support to you and your family. As a newcomer, understanding how Canadian taxes work, when you must file, how to qualify for benefits, and how to protect yourself from scams is essential.

This guide explains what it means to be a newcomer for tax purposes, how residency and immigration status affect your obligations, how to get a social insurance number (SIN) or temporary tax number (TTN), how to start receiving government payments, what deductions and credits you can claim, and how to manage your information with the CRA safely and confidently.

Who Are Newcomers According to the CRA?

The CRA considers you a newcomer to Canada for the first year you are a resident of Canada for income tax purposes. This is not the same as your immigration status (permanent resident, student, worker, or refugee). For tax purposes, what matters is when you:

• Establish residential ties in Canada, and

• Begin to live here on a regular basis

For most newcomers, residency for tax purposes starts on the first day you live in Canada with significant ties, such as:

• A home in Canada

• A spouse or common-law partner in Canada

• Dependants who live in Canada

• Provincial health coverage

• Personal property and social connections in Canada

Your residency status determines:

• Whether you must file a Canadian tax return

• Which income you must report (worldwide vs Canadian only)

• When you can start receiving benefits and credits

Your immigration status (permanent resident, protected person, temporary resident, visitor, etc.) determines whether you can live, work, or study in Canada—but it does not directly determine your tax residency. For benefits, however, you often need both: tax residency and a valid immigration status.

Residency Status and Immigration Status

Residency Status for Tax Purposes

In Canada, tax obligations are based on residency status, not citizenship or passport. You may be:

• A resident of Canada (full-year)

• A deemed resident

• A non-resident

• A part-year resident (newcomer or emigrant)

Residency can change year to year, depending on:

• How long you stay in Canada

• The reason for your stay

• Whether you leave temporarily or permanently

• The ties you keep inside or outside Canada

International students, temporary foreign workers, and visitors can all be residents for tax purposes if they have sufficient ties to Canada.

Immigration Status and Benefits

Your immigration status is determined by Immigration, Refugees and Citizenship Canada (IRCC) and can be:

• Permanent resident

• Protected person (refugee)

• Temporary resident (study permit, work permit, visitor record, temporary resident permit)

For most government payments:

• You must be a resident of Canada for tax purposes

• For some benefits, you must also hold a valid immigration status

Example: A temporary resident may begin receiving the Canada child benefit (CCB) starting in the 19th month after arriving in Canada, provided their permit remains valid and other criteria are met. If the permit is renewed, you must update the CRA to keep payments flowing.

Get and Protect Your SIN or Temporary Tax Number (TTN)

A Social Insurance Number (SIN) is a nine-digit personal identification number used to:

• Work in Canada

• Access government programs and benefits

• Open most bank accounts

• File tax returns

You must keep your SIN confidential. If it is stolen or misused, you could face:

• Identity theft

• Misapplied tax refunds

• Fraudulent benefit claims in your name

If Service Canada cannot issue a SIN immediately, you may obtain a temporary tax number (TTN) from the CRA for filing and benefit purposes.

Always:

• Apply for your SIN with Service Canada

• Never share your SIN by text, social media, or email unless you initiated contact with a trusted institution

• Store your SIN document securely and avoid carrying it in your wallet

Canada’s Tax System: What Newcomers Need to Know

Canada’s tax system is administered by the Canada Revenue Agency (CRA) for the federal government and for most provinces and territories. In Quebec, Revenu Québec administers provincial tax separately, so you may have to file two returns: a federal return and a Quebec return.

Key points:

• The tax year follows the calendar year: January 1 to December 31

• Your return is usually due April 30 of the following year

• If you or your spouse/common-law partner is self-employed, your filing deadline is June 15, but any tax owing is still due April 30

• Employers, pension payers, and benefit providers generally deduct tax at source and send the CRA:

  • Part of your pay as tax

  • A tax slip showing income and deductions

Each year, you must:

• Report your worldwide income (if you are a resident for tax purposes)

• Claim deductions and credits

• Calculate federal and provincial/territorial tax

• Determine if you owe tax or get a refund

You must keep all supporting documents (receipts, slips, contracts) for at least six years in case of CRA review.

Get Government Payments as a Newcomer

One of the most important reasons to understand the CRA is that it administers benefit and credit payments that can significantly support your income:

• GST/HST credit and similar provincial credits

• Canada child benefit (CCB)

• Canada Carbon Rebate (CCR)

• Child disability benefit (CDB)

• Canada workers benefit (CWB)

• Various provincial and territorial programs

You can apply for some payments as soon as you arrive, even before filing your first tax return.

Start Getting Payments Before Your First Tax Return

If you arrive in 2024:

• You are not required to file a 2024 return until April 30, 2025

• But you can apply for benefits right away if you are a resident for tax purposes

To apply:

• Form RC151 – GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada

  • Used to apply for the GST/HST credit and CCR

  • The information may also qualify you for related provincial and territorial programs

• Form RC66 – Canada Child Benefit Application

  • Used if you have children under 18 and meet CCB eligibility requirements

  • Must include RC66SCH (Status in Canada and Income Information)

  • The information also determines eligibility for:

    • GST/HST credit

    • Canada Carbon Rebate

    • Related provincial and territorial child and family benefits

The CRA uses these forms to decide if you qualify for payments even before you file your first return.

Examples of Key Payments

• GST/HST Credit

  • Tax-free quarterly payment to offset sales tax costs

  • Up to a few hundred dollars per year for individuals and families with modest income

• Canada Child Benefit (CCB)

  • Tax-free monthly payment for children under 18

  • Amount depends on family income and number/age of children

• Canada Carbon Rebate (CCR)

  • Quarterly payment in eligible provinces

  • Helps offset federal pollution pricing costs

Once you start filing returns each year, the CRA uses your tax return to update payment amounts automatically.

Keep Getting Payments: File on Time and Keep Information Updated

To continue receiving benefits and credits:

1. Do your taxes every year, even if:

   • You have no income

   • Your income is tax-exempt

   • You are a student or on a temporary work permit

2. If you live in Quebec:

   • File both a federal and provincial return

3. Always update the CRA if:

   • Your marital status changes

   • Your number of children changes (birth, adoption, child leaves your care)

   • You leave or re-enter Canada

   • Your temporary resident permit is renewed or expires

   • You change your address, email, or banking information

If your spouse or common-law partner is a non-resident, and you receive the CCB, you must:

• Report their worldwide income using Form CTB9 – Income of Non-Resident Spouse or Common-Law Partner for the Canada Child Benefit

This is because CCB is based on family net income, not just your income.

Doing Your First Tax Return as a Newcomer

When you file your first return:

• Make sure you report worldwide income from the date you became a resident

• If you lived in another country in part of the year, you may need to:

  • Report foreign income

  • Convert foreign amounts to Canadian dollars

  • Consider tax treaties for double taxation relief

You can file:

• Online using NETFILE-certified software

• By paper using the appropriate income tax package (federal and, in Quebec, provincial)

• With free help at a tax clinic if you have modest income and a simple situation

• With a professional CPA when:

  • You have foreign income

  • You own foreign assets

  • You operate a business or are self-employed

  • You have complex family or residency issues

Claim Deductions, Credits, and Common Newcomer Expenses

When you file, you can claim deductions (reducing income) and credits (reducing tax payable). Common ones for newcomers include:

• Spouse or common-law partner amount

• Disability tax credit (DTC)

• Home buyers’ amount (for first home in Canada)

• RRSP contributions

• Donations and gifts

Frequent newcomer expenses:

• Medical expenses (for you and your family)

• Education expenses and tuition

• Childcare expenses

• Moving expenses, if you moved to work or study and meet conditions

Claiming these correctly may produce a refund or reduce money owed.

Manage Your Information with the CRA

You can manage your CRA information and view your account using:

• My Account (online portal for individuals)

• CRA phone lines

• Authorized representative access (e.g., CPA or family member)

From My Account, you can:

• View and update personal details (address, phone, email, marital status)

• Register for or change direct deposit

• View benefit payment dates

• Check your tax refund status

• Get copies of tax slips and notices of assessment

• Get proof of income statements

• Arrange payment plans if you owe tax

Protect Yourself From Scams

Newcomers are often targeted by scams where callers, emails, or texts pretend to be the CRA. Remember:

• The CRA will not threaten immediate arrest or deportation

• The CRA will not demand gift cards, cryptocurrency, or prepaid credit cards

• Never click on suspicious links in texts or emails claiming to be from CRA

If in doubt:

• Log in to My Account to verify messages

• Call CRA directly using official phone numbers

• Do not give your SIN or banking information to unknown callers

Services for Persons With Disabilities and Know Your Rights

The CRA offers:

• Accessible formats and services for persons with disabilities

• The Disability Tax Credit (DTC) and related benefits, like the Child Disability Benefit

You also have 16 rights under the Taxpayer Bill of Rights, including:

• The right to be treated professionally, courteously, and fairly

• The right to complete, accurate, clear information

• The right to formal review and appeal

• The right to privacy and confidentiality

Understanding your rights helps ensure fair treatment in all interactions with the CRA.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps newcomers integrate into Canada’s tax system with confidence. We assist with:

• Determining your residency status

• Filing your first tax return in Canada

• Applying for benefits like CCB, GST/HST credit, and CCR

• Coordinating Quebec and federal returns

• Reporting foreign income and assets

• Optimizing deductions and credits for your family

• Avoiding penalties and protecting you from common newcomer tax mistakes

If you are new to Canada and unsure where to start with the CRA, Mackisen can guide you step by step—from applying for benefits to filing your first return—so you can focus on building your new life while staying fully compliant and maximizing the support available to you.