The Canadian tax system
Generally, most types of income you receive are taxable, and you have to report them on your income tax and benefit return.
Some of the common types of income a Canadian resident may receive are: employment income; self-employment income; tips and gratuities; occasional earnings; investment income; and universal child care benefit payments.
This is a general list. For more information on taxable income, go to the CRA webpage on that topic. The link is included in the Related links for this segment.
Many of the benefits Canadians enjoy are made possible through taxes. Canada’s tax system pays for roads, schools, health care, social security, and public safety among other things.
Tax revenue is used to deliver benefits to lower-income families, charities, students, seniors, and persons with disabilities.
Tax revenue provides social benefits such as old age security, the Canada child tax benefit, the working income tax benefit, the universal childcare benefit, and the goods and services tax/harmonized sales tax credit.
The Canadian tax system is based on residency. Canadian residents pay taxes on their income from all sources, both inside and outside of Canada, and non-residents of Canada pay taxes only on their income from Canada.
Identification
The people who can ask for your SIN are employers preparing T4 slips that show your wages and deductions; financial institutions that prepare T3, T4A, or T5 slips to record various types of investment income or other amounts; and government programs such as the Canada child tax benefit and employment insurance. Other organizations may also ask for your SIN. For more information, go to the Service Canada webpage on who can ask for your SIN.
A SIN is a nine-digit number that you need to work in Canada or to have access to government programs and benefits.
Your SIN is unique, personal, and confidential. Only you can use it.