What taxes do new immigrants need to pay in Canada?

(1) income tax

Canada's income tax is collected by the federal government and provincial or territorial governments. Canadian residents must pay income tax according to their income in various countries in the world. Non-Canadian residents need to pay taxes in Canada as long as they have the following income or gains in Canada. The "taxable income" of individual income tax in Canada is divided into four categories: wage income, business income, investment income and capital income. Federal personal income tax is subject to excessive progressive tax rate. The higher the taxpayer's income, the higher the tax rate. Most of the passive (investment) income obtained by non-residents in Canada, including interest, dividends, rents and royalties, is subject to 25% income tax deduction as long as it is paid by Canadian residents or prepaid to non-residents. Non-residents in Canada can reduce or exempt the income tax payable according to the relevant tax agreements signed between their countries of residence and Canada. Some treaties can reduce the payable income tax rate to 5%, 1 0% or 1 5%, and limit the income tax levied on the operating profits of enterprises that set up "permanent institutions" (such as branches) in Canada to a certain extent. Generally speaking, non-Canadian resident entities conduct business activities through their subsidiaries in Canada, which is not much different from the subsidiaries owned by Canadian resident entities engaged in business activities in Canada in terms of paying income tax.

(2) Consumption tax and other taxes

Canadian consumption tax is the general name of a kind of tax: firstly, it is the goods and services tax similar to China value-added tax, namely GST, which is divided into federal goods and services tax and provincial goods and services tax. From 1 99 1, Canada imposed a federal goods and services tax of 7% on the sales of most goods and services, and it was reduced to 6% from 2006. All provinces levy goods and services tax on retail goods and services, and the tax rate ranges from 6% to 12%. Secondly, there is a consumption tax similar to our country, which imposes special consumption tax on gasoline, diesel, wine, jewelry, air conditioning and heavy vehicles. However, items such as basic insurance and prescription drugs can be exempted from consumption tax. For most people who buy goods and pay goods and services tax in business operations, the tax refund mechanism can be used to offset the paid tax ⅲ. Some provinces levy sales tax on the sale of personal tangible assets and the provision of certain services. When calculating income tax, there is generally no deduction of sales tax and no tax refund. The trading of stocks, other financial securities and other financial products is exempt from GST and provincial sales tax. On July 1 2065438, Ontario, British Columbia and Nova Scotia implemented a unified sales tax (HST) to replace the current dual-track parallel model of federal goods and services tax (GST) and provincial retail business tax (PST), and future taxes will be uniformly collected by the federal government; The HST tax rate in Ontario is 13%, British Columbia is 12%, and Nova Scotia is 15%. In Canada, stock exchanges do not have to pay stamp duty.