Income Tax Treaties and International Students
	Many of a country have income tax agreements with other countries. The objective of this agreement is to avoid double taxation. Canada has signed this kind of agreement with 80 countries such as US, UK, France, China, India, and Singapore.   Generally speaking, if a country has an agreement of income tax with Canada, the students come from that country do not have to pay any income tax to Canada government for their bursary, grants, and other financial support, no matter which sources the payment come from. The agreements normally have an article likes follows:   Payments which a student, apprentice or business trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that Contracting State.   According to the agreements, students from the contracting countries pay no income tax if the income is for supporting education and training. Not only this, but also the students are able to get some compensation such as property tax credit, provincial sales tax credit and GST returns from Canadian government if they are qualified.   As an international student, if you are eligible for tax free due to the income tax treaty between your country and Canada, you’d better attach the related articles in the treaty with your return.

 

	Hope Canada  accounting & Taxation Services 301 Spdina Ave./North of Dundas St. W.  Tel：416 473 0091/416 214 2663                 Fax：416 214 2860  Contact: Harry Chen          Accountant