Canada | Neotax

Have you worked in Canada?

Need to file a tax return? Find out how much you'll owe or get back as a tax refund.

Price list

You can see our pricelist here. If you are not sure which package to choose, check out our instructions below.

How does it work?

chart

Or you can watch the video.

FAQ

  • 1. I worked in Canada and paid taxes. Do I file a tax return?
    • Everybody who works abroad and pays an income tax should file a tax return. Under certain conditions, you can refund some of the taxes you (your employer) paid. We refund overpaid taxes from Canada.
  • 2. What taxes are paid in Canada?
      • Federal income tax at the rate of 15% to 33%
      • Provincial/Territorial income tax which varies depending on the province/territory.
  • 3. What does a “tax refund” mean?
    • A refund means that your employer paid on your behalf more taxes than was necessary, and you can claim the excess money back. By filing a tax return, you are actually reporting to the Canadian tax office how much you earned as gross income and how much you paid on taxes while you stayed in Canada.
  • 4. Why do some agencies claim that they will refund MORE tax overpayment for you than the others?
    • There is no such a thing as “more refund” on your taxes. Be careful, because this might be a marketing trick to attract you to sign a contract. If a tax specialist does your tax return properly, according to the Canadian tax law, the refund can be calculated in only one possible way! If an agency applies tax deductions that you are NOT entitled to, your refund will increase on one hand (you will get back more money), but you are at a very high risk that you will have to pay it back to the Tax Office.
  • 5. What documents do you need for your tax refund?
    • In order to get your income tax refund as quickly as possible and to apply for the highest amount, you need to have:
      • A T4 annual earning summary from all employers
      • SIN (Social Insurance Number)
      • Statement about your income from outside of Canadaduring the fiscal year.
  • 6. What is a T4 form?
    • A T4 is an annual earning summary prepared by your employer to tell you and the Canada Revenue Agency (CRA) how much employment income you were paid during the tax year and the amount of income tax that was deducted.
  • 7. What if you do not have all the necessary documents?
    • Even if you do not have all the documents mentioned above, you can still apply for your tax refund. We offer a “replacement” service - we will contact your former employer/s and will request copies of your earning documents as your agent.
  • 8. How many years back can I file my tax refund?
    • The limit is set to 3 years. For example, claims for 2017 must be made by 31 December 2020. Claims made after this time cannot be repaid.
  • 9. How long does it take to get my tax refund?
    • It takes on average 4 months to be processed by the tax offices. This is counted from the time your documents are received by the tax authorities. The actual time may vary on a case by case basis.
  • 10. When is the deadline for filing the tax return?
    • A tax return has to be filed on April 30th of the following year at the lastest. For example, 2019 tax returns must be filed by April 30th 2020. However, it is possible to file a tax return for the previous years if it is your first time.
  • 11. What are the penalties for late tax return filing/tax-paying?
    • You must file a tax return and you must pay your underpaid taxes or balance. In case you are unable to pay the whole amount, you can make payment arrangements. It is your responsibility to contact the Canada Revenue Agency before May 1st to avoid interest and penalties. The penalty is 5% of any balance owed, plus 1% of the balance owed for each full month that the return is late, to a maximum of 12 months. The late-filing penalty may be higher if the CRA charged a late-filing penalty on a return for any of the 3 previous years.
  • 12. Why is your tax calculation different from the actual Tax Office calculation?
    • In some cases, tax officials calculate the tax on your Tax Return higher or lower than the Tax Office shows in the final calculation. What are the most frequent causes?
      • The Tax Office had different data on your record (your employer reported different data than you have on your T4 form)
      • Your employer wrongly paid more/less than was necessary
      • You may have some debt/overpayment from previous years

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