Welcome to Canada International Students

1. Welcome to Canada International Students

2. Presentation objectives • This presentation is for you if you have left another country or a Canadian province or territory to settle in Québec. It will give you an overview of the Québec taxation system and of the assistance programs available. • This presentation will also help you to complete your first income tax return as a Québec resident. • We invite you to visit our website at www.revenuquebec.ca

3. Are you a Québec resident? • For income tax purposes, you are generally considered a Québec resident if you have established sufficient residential ties in Québec. • You will be considered a resident as of the date of your arrival in Québec,

4. Residential ties in Québec? You have residential ties if, you have in Québec: • a home in Québec; • a spouse or de facto spouse and dependants who live with you; • personal property, such as a car or furniture, and social ties. • Other ties such as a Québec driver’s licence, credit cards issued in Québec or current bank accountsin Québec, and eligibility for Québec health insurance.

5. Québec tax obligations • Revenu Québec makes sure that all Québec residents pay their fair share of the funding of public services. • The Québec taxation system is based on the principle of self-assessment. All taxpayers must provide the required information about their income, deductions and credits in order to calculate and pay their share of income tax. • You must file an income tax return to be eligible for credits, deductions and assistance programs. • You must fulfill your Québec tax obligations each civil year.

6. The Québec taxation system • The Québec taxation system is similar to the Canadian one and the one of many other countries. What is an income? • Income consists of amounts earned or received, such as salaries and wages, commissions, fees, interest, dividends and annuities. What is a relevé slip? • An RL slip is an official receipt that you receive annually from a person who paid income to you or to whom you paid an amount. RL slips must be enclosed with your income tax return.

7. Who is required to file an income tax return • An individual who is resident of Québec on December 31 of a taxation year must file a Québec and a Canada income tax return. • Even if you have no income or no income tax payable, you should file a tax return in order to be entitled to certain assistance programs.

8. You must file a Québec income tax return if: • you are required to pay income tax; • you wish to claim • child assistance payment; • Solidarity tax credit; • refund of income tax withheld at source; • tuition or examination fees;

9. What is your residency status? • Resident • Non-resident • Deemed resident You must know your residency status in order to file your income tax return correctly.

10. Residentsof Québec and Canada Period of non residence(1) Two distinct periods in the year of arrival Period of residence (2) Arrival date (march 2012) January 1st December 31 • Income earned in Canada only salary, business income (see tax treaty with the country). • Income earned in the country of origin before the date of residence are not taxed in Canada, but must be included in the income tax declaration on line 19. (2)Worldwide income (regardless of source) must be reported in Canada.

11. For more informationYou may refer to • Interpretation bulletin IMP. 22-3/R1, « Determination of an Individual’s Residency Status » • The publication IN-119-V, « New Residents and Income Tax » • And don’t forget our website at: www.revenuquebec.ca

12. The publication New Residents and Income Tax

13. How to file your income tax return • You must obtain the “Forms” booklet and the “Income tax Guide”.

14. How to produce your tax return • http://www.revenuquebec.ca/en/citoyen/impots/guide/default.aspx

15. When to file your income tax return • If you reside in Québec the 31e December 2012, you must file: • A provincial income tax return • And a federal income tax return • your income tax return must be send by the April 30, 2013. • Refer to the information on the back of your releve slips to find out on which line of the income tax return you should enter the amounts shown on the slips.

16. See the explanation of boxes and instruction. You will find instructions that refer to the lines of the return Releve 1

17. How to file your tax return? • Fill in your tax return referring to the guide. Information are grouped according to the line numbers in the income tax guide. • Enclose the required schedules.

18. How to complete your return

19. Completing your 2012 Quebec income tax return step by step • Enter the date of your arrival (or departure) on line 18. In the box on line 18, enter the number from the list below corresponding to your situation: 01 New resident in Canada 02 Temporary stay in Canada 03 Foreign student 07 Other situation (enclose an explanatory note) • Enter on line 19 the total income that you earned during the period in which you were not resident in Canada.

20. Valid address Income earned while you were not resident in Canada Enter your social insurance number Date of arrival in Canada

22. Completing your 2012 Quebec income tax return step by step • You must report your world income from the date of your arrival up to December 31, 2012. • Amounts earned in foreign currency, must be converted in Canadian dollars. • Different rules apply if you spent less than 183 days in Québec and have not establish residential ties in Québec. For more information, contact our services.

23. RL-1 slip Employment income

24. Back of the RL-1 slip

25. Employment income • On line 101,enter your total employment income, as shown in boxA of your RL-1 slip. • On line 98, enter the amount shown in box B of your RL-1 slip. • On line 98.1, enter the amount shown in box G. • On line 97,enter the amount shown in box H

26. Box H of your RL-1 slip Total incomeEmployment income Box B of your RL-1 slip Box G of your RL-1 slip Box A of your RL-1 slip

27. Foreign researchers on a post-doctoral internship • Enter the amount from box A of your RL-1 slip on line 101. • Enter the result of the following calculation on line 297: • the amount from box A-11 of your RL-1, minus • the total amount from lines 105+207 of your return • multiplied by the exemption rate shown in box A-14 of your RL-1 slip. • Enter “05” in box 296. • Keep the certificate issued to your employer by the Ministère de l’Éducation, du Loisir et du Sport. {

28. Taxable incomeForeign researchers on a post-doctoral internship Code 05

29. Deduction for workers • Ligne 201 • To calculate your deduction , complete work chart 201. • You may claim a deduction equal to 6% of your eligible earned income (line 101). • The maximum deduction is $ 1,075.

30. Work Charts 201

31. RL-1 slip Scholarships RB

32. Scholarships and bursaries (box O of the RL-1 slip identified by code “RB”) • Enter the total amount of your scholarships, bursaries or similar financial assistance on line 154. • Enter code“01” in box 153. • You will not pay income tax on this amount, since you may claim a deduction on line 295.

33. Total incomeScholarships Code 01

34. Taxable income (Scholarships)

35. RL-1 slip Research grants RC

36. Research grants (box O of the RL-1 slip identified by code “RC”) • To calculate the net amount of research grants: • Subtract the expenses incurred from the amount shown in box O of your RL-1 slip; • Carry the result to line 154. • Enter “03” in box 153: • Enclose a detailed statement of your expenses.

37. Research grants (box O of the RL-1 slip identified by code “RC”) Allowable Expenses; • Travelling expenses, including transportation, meals and lodging, in respect of field trips related to his work. • Expenses incurs in the course of the research such as, rental, research assistants, etc. Expenses incurred in the year, the year before and the year after, you received the grant • Must not exceed the total taxable research grants • Consult interpretation bulletin IMP. 312-1/R1.

38. Total income Research grants Code 03 Net amount

39. Moving expenses • An international student can claim moving expenses if he or she: • is enrolled in a post-secondary program as a full-time student; and • received a research grant after moving to Canada (the deduction is limited to the net amount of the research grant line 154). • To calculate the deduction that you may enter on line 228, complete form TP-348-V, Moving Expenses.

40. Net incomemoving expenses Moving Expenses

41. International students and moving expenses • For further information on moving expenses, consult interpretation bulletin • IMP. 348-1, Moving Expenses.

42. Tax credits

43. Non-refundable tax credits A tax credit is an amount granted to a taxpayer on the basis of his or her tax profile and family situation in order to reduce his or her income tax payable.

44. Non-refundable tax credits • Non-residents may not clamthe non-refundable tax credits • Immigrants, emigrants and deemed residents can claim non-refundable tax credits provided under lines 350-397

45. Non-refundable tax credits • In general, the year of your arrival or of your departure from Canada, you must reduce certain amounts used to calculate your non-refundable tax credits in proportion to the number of days you were resident of Canada;

46. Non-refundable tax credits • For example, arrived in Canada May the 6, 2012: 240 days in Canada x $10,925 (line 350) = $7,183.56 365 days in the year

47. Non-refundable tax credits Exception You may claim your non-refundable tax credits in full if: • you have no income for the part of the year you were not resident in Canada; or • you earned more than 90% of your income in Canadafor the part of the year you were notresident of Canada.

48. Non-refundable tax credits • Basic personal amount (line 350) • Amount for person living alone (line 361, Schedule B) • Medical expenses (line 381, Schedule B) • Tuition or examination fees (line 384, Schedule T) • Donations (line 393 to 397)

49. Basic personal amount Basic personal amount Non-refundable tax credits

50. Person living alone • To calculate the amount you can claim, complete Parts A and B of Schedule B. • If, throughout 2012, you maintained and ordinarily lived in a dwelling in which you lived alone or only with one or more persons under the age of 18 years old.