Canada To Become More Attractive Immigration Destination With Its New Taxation Policy

12 Dec 2015

Good news for people belonging to the low and middle-income groups and looking forward for immigrating to overseas based on tax saving. As per the new reports, it was found that Canadian government is about to make some advancements in the taxing rules of the province.

Under the new system, every individual residing in the province is tax liable from the moment he or she arrives the province. Sources noted that the new changes are more beneficial to low- and mid-income earners than the high-paid professionals.

According to the new rules, individuals with high income are recommended to pay a higher percentage of tax than the lower class, i.e people earning around $45,282- $90,563 will have to pay 20.5% tax, which is quite less than that of the earlier pay. Earlier people with same pay were asked to pay 22% of the tax.

On the other hand, people earning around 200,000 dollars are about to be taxed 33%. And this new amendment is going to effect from 1 January 2016, said the sources.

Also added that the introduction of new amendments in a tax free savings account [TFSA] is expected to increase the inflow of overseas individuals to the province.

As per the new change, the maximum amount that an individual is permitted to deposit each year has been set at 5,500 dollars. In fact, this is one of the excellent saving options for overseas individuals, as he or she need not hold any previous income in the province. The new plan is completely different from the earlier Registered Retirement Saving Plan (RRSP), where one is recommended to previous savings in Canada.

Moreover, TFSA supports tax-free withdrawals and contributions made to this are not tax-deductible.

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