Taxes to pay in Canada 2 Questions

ludovico · Post by **ludovico** » Sun Jul 11, 2010 7:52 pm

Hello everybody!

I really appreciate the time ou will take reading my message because this is something really important to me.

First Question:

I am new in Canada, I just arrived to Quebec and I was informed that the taxes we have to pay for the income are 30% as I earn 10 $/h I was surprised with that statement, I went to the internet and I found out that indeed the taxation is like that. When I made my budget I realized that I won't save almost nothing with that kind of taxation, then I was looking for more information in the internet and I found out two sites to calculate de taxation, nevertheless even when they confirm to me that indeed it is 30% I find that the amount of money that we have to pay in taxes (as per this site) is far from being 30%. Could you explain me what these site inform or maybe give information about a better and more accurate internet site and please confirm me the information about the taxation. Here you have the sites.

http://intuit-support.intuit.ca/tools/t ... index.html

http://lsminsurance.ca/calculators/canada/income-tax

Second Question:

I work in an airlaine in my country, I am also considering to come back to that job for six months in order to save more money to pay me the studies here. But when I called to the canadien Revenue Agency they told me that I also had to pay taxes for that income since I am Canadian Resident. It is that true or not? Because I will be paying taxes in Peru.

Thank you for your answers!
Jose

nelsona · Post by **nelsona** » Mon Jul 12, 2010 8:17 am

There are 2 issues: Tax withholding and eventual tax. You can reduce your withholding by filing a form with your employer.

Your final tax will be based on your total income and deductions/credites etc.

Whatever tax you pay in Canada will be credited on your Peruvian return

ludovico · Post by **ludovico** » Tue Jul 13, 2010 1:15 am

[quote="nelsona"]There are 2 issues: Tax withholding and eventual tax. You can reduce your withholding by filing a form with your employer.

Your final tax will be based on your total income and deductions/credites etc.

Whatever tax you pay in Canada will be credited on your Peruvian return[/quote]

But what about these two site, do they say what I have to pay monthly or yearly?

Thanks

ludovico · Post by **ludovico** » Tue Jul 13, 2010 1:28 am

[quote="nelsona"]There are 2 issues: Tax withholding and eventual tax. You can reduce your withholding by filing a form with your employer.

Your final tax will be based on your total income and deductions/credites etc.

Whatever tax you pay in Canada will be credited on your Peruvian return[/quote]

In other words I would like to know if I have to pay by following the AVERAGE TAX RATE or the MARGINAL TAX RATE.

Thanks

nelsona · Post by **nelsona** » Tue Jul 13, 2010 7:20 am

They are accurate, but are for those earning money over the whole year.

Raykirk · Post by **Raykirk** » Thu Sep 23, 2010 2:48 am

I definitely agree with nelsona that they are accurate. I am also using this calculator in computing my tax. You can immediately know the outcome or your total income through this.