Banking, Money and Taxes in Canada

Banking in Canada is sophisticated, safe and is considered one of the best systems in the world. Connecting to overseas bank 

accounts is common, and paying for goods with credit or debit cards – both international and local – is standard.

 

International banks that have large operations in Canada include ING Bank, HSBC, and Citibank. Some international banks that operate in the UK, such as HSBC, can assist in making an easy transition to a new account in Canada from a prior account held abroad.

 

The five largest Canadian banks are Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce. These all offer easy access to accounts, boast a robust network of ATMs and have Internet banking services; they are each found in most major Canadian cities.
 

The official currency in Canada is the Canadian dollar, or as locals affectionately refer to it, as “the Buck” or “the Loonie”. Though Canadian currency and US currency resemble each other both in title (both are called the dollar) and in some cases in appearance, US currency is not generally accepted in Canada, and Canadian currency is not generally accepted in the US.

There are some exceptions to this rule, but it’s best not to expect these outliers to be the norm. 
 

The Canadian dollar is divided into 100 cents, and is abbreviated either as CAD or C$.
 

►Notes: 5, 10, 20, 50 100 

►Coins: 1, 5,10, 25 cents and 1 and 2 dollars
 

Canada is both a cash and card society, and expats will find both methods of a payment accepted nearly everywhere Furthermore, with the exception of the more remote northern territories, ATMS are ubiquitous, as are banks branches. 
 

 

Every bank in Canada will provide you with slightly different services and products, and it’s best to evaluate your priorities and then find a bank that can satisfy your requirements. It also helps to find a bank with branches in close proximity to your work and home. 

 

While there are bank accounts in Canada that are no-free or low fee accounts, these are mainly for students and seniors. Expats who expect to make a large number of transactions, and who want have more flexibility with their account will need to consider packages that do have set fees attached. 

 

To open a bank account in Canada, reserve an appointment with a bank representative and bring proof of identity to the first meeting; it’s best to bring two acceptable items as ID. Bring a combination of documents that collectively include your name, your signature, your address, and your photograph. Also bring proof of residential address, like a utility bill (electricity, telephone, or water). You may be asked to supply documents summarising your banking history, or a reference from your past bank or your current employer.

 

As long as you can identify yourself, you can open an account. It does not matter whether you are unemployed or bankrupt, and you do not even have to make an initial deposit — especially because opening an account in Canada is free. 

 

Some banks even allow you to start the account application process from abroad via online portals.

 

If you need help setting up your financial life (i.e. mortgages, payday loans, bank accounts, credit reports, etc.), feel free to visit the website of Financial Consumer Agency of Canada (FCAC) or contact the Agency at 1-866-461-3222.

 

 

Tax for expats in Canada can be confusing, and can become downright unintelligible when coupled with home country taxation laws. To avoid paying taxes in both Canada and abroad, especially the UK, it's recommended to hire an accountant specialising in expat taxes.

 

Canadians are responsible for both federal and provincial income tax. In general, federal rates are significantly higher than provincial rates, though the rates can vary greatly between provinces. Taxation is based on income brackets; those in a higher bracket pay a higher percentage of tax and those in a lower bracket pay a lower percentage.

 

That being said, most Canadians only file one income tax return for the tax year, as the Canadian government collects taxes on behalf of all provinces and territories except the Province of Quebec.

 

Canadians are taxed on their worldwide income, which is eligible for provincial and federal taxes if an individual is in the country for 183 days, regularly resides in Canada, or has established residential ties in Canada.

 

The due date for filing taxes is April 30.