Canada has a complex tax system that can be overwhelming for many individuals. As a Canadian citizen or resident, it is important to have a basic understanding of how taxation works in order to stay compliant and potentially save money. In this article, we will cover the basics of Canada taxation, including what types of taxes are collected, who is responsible for paying them, and how you can file your taxes.
Canada’s taxation system is primarily based on a self-assessment model, meaning that individuals are responsible for reporting their own income and paying the appropriate taxes. This includes income tax, sales tax, and property tax. Income tax is the largest source of revenue for the country and is collected by the federal and provincial governments. The amount of income tax you owe is determined by your income level, deductions, and credits. Sales tax, also known as the Goods and Services Tax (GST) or Harmonized Sales Tax (HST), is collected on most goods and services sold in Canada. Property tax is levied by municipalities on the value of real estate properties. It is important to keep track of all of your income and expenditures in order to accurately report and pay the necessary taxes.
Understanding how taxation works in Canada is crucial for every citizen and resident. By having a basic understanding of the tax system, you can ensure that you are compliant and potentially take advantage of
