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Tax Guide for Immigration to Canada in 2022

The tax filing deadline for Canada 2022 will be at April 30th, 2022. However, since April 30th is a Saturday, so the Canada Revenue Agency (CRA) requires the declaration to be received on or before May 2nd, 2022.

In this regard, if you or your spouse are self-employed, you must file a tax return by June 15th, 2022. Failure to pay on time could result in interruption of benefits or even penalties.

File your Total Net Income of 2021 in 2022

Filing a tax return is not only an obligation, but it is also related to various benefits. For example, pensions and consumer tax return. Canada’s federal tax rate was adjusted in 2022 by five brackets based on individual income. Most annual income tax and benefit amounts are tied to the rate of inflation.

As previously announced by the Canada Revenue Agency in November of last year, the tax rate registration and the amount of inflation for 2022 will be 2.4%. In addition, residents of Canada who are 18 or above can hold eligible investment products such as stocks, cash, bonds and mutual funds in a tax-free savings account (TFSA).

So what is included as income? It includes income from employment, business income, investment income, interest, stock dividends, rent, and other income. Note that earnings from Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) accounts are not counted as income. However, they are only added together to total income.

Salary income is generally subject to income tax withholding at the time of payroll. However, some self-employed income and other higher income are subject to different taxes. It is important to note that most of the federal government grants during the epidemic are taxable income and are subject to taxation.

In addition, by the end of February of each year, the Canadian government, banks, companies, etc. will send individuals their income and withholding tax for the previous year. For example, for T4, T4E, T4A, T3, T5, etc., it is possible to find out how much total income was earned and how much tax was withheld in the previous year. The amount of income in each registered section is calculated separately using the corresponding tax rate.

The Canada Emergency Student Benefit (CESB) and the Canada Emergency Response Benefit (CERB) are not tax deductible at the time of payment, unless the personal exemptions are not exceeded after these two benefits are added, otherwise, back taxes are required.

Personal Tax Changes in 2022

The year 2021 under COVID-19 was an extraordinary year, and unlike before when you may have just focused on getting a T4 form, the 2021 tax return is likely to look different. In addition, Canadians who receive COVID-19 benefits must report their income on their tax returns.

For example, you must report income from Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), and Canada Recovery Caregiving Benefit (CRCB). Recipients of these benefits will receive a T4A from the Canada Revenue Agency (CRA).

Tax is withheld at source for these three benefits. However, you may still need to pay taxes or receive a refund based on your other sources of income.

The CRA will consider you to have filed your tax return on time if:

  • Received on or before May 2nd, 2022
  • Your physical form of tax return is postmarked on or before May 2nd, 2022
  • Filing on time is more than just getting your tax refund on time. In addition, delays in filing your tax return may result in penalties and may also delay or negatively affect your government benefits. For example, you may miss out on Canada Child Benefit and GST or HST credits.

Late Filing Penalties

In the case of late filing of tax returns, the CRA will immediately assess a 5% penalty on your tax balance plus 1% of your monthly tax balance, not including additional interest penalties. In addition, if you have also filed late in previous years, the CRA may also increase your “late filing” penalty to 10% of your tax balance plus 2% per month for up to 20 months.

Late Filing Interest

In addition to the “late filing” penalty, the Canadian government will charge you interest on the tax, which also includes a penalty. In some cases, if you can prove that circumstances beyond your control prevented you from meeting your tax obligations, such as financial hardship, natural or man-made disasters, serious illness or accidents, postal strikes, etc.

Tip: Even if you are unable to pay the CRA the taxes, it still makes sense to submit your taxes before the deadline. Doing so means that you can avoid paying penalties late and only get into trouble for paying interest.


The above is a guide to filing taxes for immigration to Canada in 2022. Simard & Associates is a team of experienced immigration consultants who have worked with numerous families and applicants to complete various Canadian immigration programs and provide one-stop immigration consulting services that make it easy for you to move to Canada.


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