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Waterloo, Ontario GMT -5
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The tax rates and other information for 2024 provided in this chapter are based on known and proposed rates as of 1 September 2024.
A. Income tax
Who is liable. The major determinant of Canadian income tax liability is an individual’s residence status. An individual resident in Canada is taxable on worldwide income. Nonresidents are taxed on Canadian-source income only.
The tax statutes do not contain a specific definition of “residence.” Accordingly, the residence of an individual is determined by such matters as the location of dwelling places, spouse, dependents, personal property, economic interests and social ties. However, a nonresident individual who stays temporarily in Canada for 183 days or longer in a calendar year is deemed to be a resident of Canada for the entire year, unless he or she is determined to have nonresident status under a tax treaty. This provision applies only to an individual who would otherwise be considered a nonresident, and not to an individual who purposely takes up residence in Canada or to an existing resident who ceases to be a resident after moving away from Canada. These latter individuals may be treated as part-year residents.
In certain situations, an individual may move from Canada to another country and retain enough ties to continue to be considered a Canadian resident for domestic tax purposes. At the same time, this individual may be considered a nonresident of Canada for tax treaty purposes. Individuals who become treaty nonresidents of Canada after 24 February 1998 are deemed to be nonresident in Canada for domestic tax purposes as well.
In the year that an individual becomes a Canadian resident, that individual is considered a part-year resident, and is subject to tax in Canada on worldwide income for the portion of the year he or she is resident in Canada. A part-year resident is also subject to Canadian tax on any Canadian-source income received during the nonresident period.
Income subject to tax. The taxation of various types of income is discussed below.
amount of the dividend. For many Canadian-controlled private corporations and their shareholders, the result of this gross-up and dividend tax credit procedure is that the combined corporate tax on the original income and the net personal tax on the dividend is approximately equal to the tax that would have been paid on the original income had it been received directly by the individual rather than passed through the corporation.
Royalties and rental income are taxed as ordinary income. In computing a loss from the rental of real estate or leasing of other property, allowable depreciation generally is limited to the net income determined before deducting depreciation. Therefore, the depreciation claimed by an individual may not create or increase a rental loss.
Beginning in 2009, all residents of Canada age 18 or older may contribute to a tax-free savings account (TFSA). No tax deduction is allowed for the contributions, but the investment earnings are not subject to tax. For 2024 and subsequent years, the annual TFSA limit is CAD7,000. Unused contribution room can be carried forward indefinitely. If an individual is nonresident for the entire tax year, he or she will not have any current-year contribution room. Withdrawals from a TFSA increase the carryforward TFSA room in the following calendar year. Individuals retain the full annual contribution room for the year they become nonresident of Canada and the year that they resume being a Canadian tax resident. Nonresidents of Canada cannot contribute to a TFSA. The tax on over-contributions is 1% per month.
Passive income derived by nonresidents. Nonresidents with sources of income from Canada other than employment or business income generally are subject to a withholding tax of 25% of gross income received. Examples of income subject to withholding tax are rental income, royalties, dividends, trust income and pensions. The payer must withhold and remit the appropriate amount of tax and must file the required returns. For the recipient, withholding taxes generally are final taxes, and tax returns are not required for income subject to withholding. However, nonresidents receiving real estate rentals or timber royalties may choose to file a tax return and be taxed in Canada on the net rental or timber royalty income at the same tax rates that apply to Canadian residents (that is, at marginal rates on net income rather than at withholding tax rates on gross income). Nonresidents receiving certain pension and benefit income may elect to be taxed on such income at the same incremental tax rates as Canadian residents, rather than at the withholding tax rate.
Most arm’s-length interest payments to nonresidents are exempt from Canadian withholding tax.
Canada’s double tax treaties generally reduce withholding taxes to 15% or less on most types of passive income paid to nonresidents.
Other sources of income. Other amounts that must be included in income are receipts from superannuation or pension plans and amounts paid from Canadian Registered Retirement Savings Plans. Eligible pension income can be split between spouses for tax reporting purposes. Under this measure, if spouses have taxable income in different income tax brackets, overall tax may be
a principal residence may not be used to reduce income for the year. In tax years before 2016, the reporting of the sale of a principal residence on a tax return was not required if the entire gain was eliminated as a result of the principal residence exemption. However, beginning in the 2016 tax year, the sale of a principal residence must be reported on a tax return in order to claim the principal residence exemption. The 2022 Federal Budget introduced a new rule to fully tax profits on the sale of a home on or after 1 January 2023 as business income if the property is held for less than 12 months. Exemptions apply if a home is disposed of as a result of certain life circumstances, such as death, disability, birth of a child, a new job or a divorce.
In general, capital losses from personal-use assets are not allowed.
Gains derived from the sale of qualifying farm property, qualifying fishing property or shares of small business corporations (see below) qualify for a lifetime capital gain exemption. However, the amount of this exemption is reduced by any amounts claimed in prior years under the CAD100,000 lifetime capital gain exemption that was eliminated in 1994.
Qualifying farm property. Farmers are eligible for a lifetime exemption equal to CAD1,016,836 for pre-25 June 2024 sales and CAD1,250,000 for sales of qualified farm property, which includes farmland, shares of a family farm corporation or an interest in a family farm partnership that occur on or after 25 June 2024. The available exemption is reduced by the amount of any exemption claimed on the disposition of any other capital property during the tax year or in preceding years.
Qualifying fishing property. Fishers are eligible for a lifetime exemption equal to CAD1,016,836 for pre-25 June 2024 sales and CAD1,250,000 for sales of qualified fishing property, which includes real or immovable property or a fishing vessel used in a fishing business in Canada, shares of a family fishing corporation or an interest in a family fishing partnership that occur on or after 25 June 2024. The available exemption is reduced by the amount of any exemption claimed on the disposition of any other capital property during the tax year or in preceding years. The exemption is effective for dispositions of qualified fishing property after 2 May 2006.
Shares of a small business corporation. Capital gains realized on the disposition of shares of a small business corporation qualify for a lifetime capital gains exemption equal to CAD1,016,836 for pre-25 June 2024 sales and CAD1,250,000 for sales that occur on or after 5 June 2024, provided that certain criteria are met. This exemption amount is reduced by any portion of a gain eligible for the exemptions described in the preceding paragraphs.
The use of this exemption may be restricted in a particular year because of cumulative net investment loss (CNIL) rules. Essentially, an individual’s CNIL is the excess of his or her post1987 investment expenses over investment income for those years. To the extent that an individual has a CNIL balance, the capital gains for the year that are eligible for the exemption are reduced.
credit is available to the extent that the individual has taxable income in excess of the highest income bracket threshold (CAD246,752 in 2024). The unused portion of the donation credit may be carried forward for up to five years. Similarly, medical expenses in excess of the lesser of CAD2,759 (in 2024) or 3% of net income are eligible for a federal tax credit equal to 15% of the excess. An individual is eligible for a federal tax credit of up to CAD300 on the first CAD2,000 of qualifying pension income.
Various other credits are available, including credits determined with reference to employment income and adoption expenses. The federal credit amounts mentioned above are based on known and proposed amounts as of 1 September 2024. The credit amounts are indexed annually for inflation.
In general, the Canada Child Benefit (CCB) is a tax-free monthly payment program that provides a maximum annual benefit of up to CAD7,787 per child under the age of six and CAD6,570 per child aged six through 17. These benefit amounts begin to be reduced (and are ultimately phased out) if adjusted family net income exceeds CAD36,502 (all figures apply to 2024).
The Canadian Dental Care plan is being introduced in phases for Canadian resident taxpayers with family net income of less than CAD90,000 and who do not have access to dental insurance. Currently, seniors aged 65 and above, adults with a valid disability tax certificate and children under the age of 18 are eligible to participate.
Provincial tax credits. The provinces and territories have their own set of personal tax credits in computing the amount of provincial or territorial tax for the year. In addition, several provinces provide provincial tax credits against taxes otherwise payable for certain groups of taxpayers. The credits are available to taxpayers with low incomes and are calculated by reference to rental or other occupancy costs.
Business deductions. Interest and other charges incurred to acquire business assets or investment property generally may be deducted. Limitations apply to the deduction of automobile and home office expenses. Deductions for business meals and entertainment expenses are limited to 50% of actual expenses.
Rates
Federal/provincial tax authorities. The federal government, as well as the provinces and territories, impose income taxes on resident individuals. However, only the province of Quebec collects its own individual income tax and requires filing a separate return. The federal government collects the tax on behalf of all other provinces and territories, which means that only one combined return must be filed.
The calculation of an individual’s tax payable is a two-step process. An individual’s federal income tax for a given year is calculated on taxable income using a single graduated rate schedule. From this amount, allowable federal personal tax credits (see Federal personal credits and allowances) and the dividend tax credit are deducted. The net result is the individual’s basic federal tax payable.
Income tax is generally paid to one of the provinces or territories based on the individual’s residency on the last day of the year. All of the provinces and territories calculate tax by applying their graduated tax rates to taxable income. A separate calculation of taxable income, which is similar to the calculation of federal taxable income, is required. However, the treatment of certain items may differ.
Federal tax rates. Canada has five tax brackets for federal income tax purposes. The federal tax brackets and rates for 2024 shown below are based on known and proposed amounts as of 1 September 2024.
Top marginal combined rates The following table summarizes the top marginal combined federal and provincial/territorial tax rates in 2024 for an individual residing in various provinces and territories.
Prince Edward
(a) The rates shown are the maximum combined federal and provincial/territorial marginal tax rates, including surtaxes, as of 1 September 2024.
(b) The rates apply to the actual amount of taxable dividends received by individuals from taxable Canadian corporations.
(c) Only 50% of capital gains is included in taxable income (see Capital gains and losses). Consequently, total capital gains up to a maximum of CAD250,000 are effectively taxed at 50% of the ordinary tax rates.
(d) Two-thirds of capital gains exceeding CAD250,000 are included in taxable income.
Minimum income tax To ensure that high-income taxpayers pay a certain level of tax, an alternative minimum tax (AMT) applies
(flat rate of 15%). Under its provisions, individuals are required to recalculate taxable income, without deducting certain items that are otherwise deductible in the regular tax calculation. In recalculating taxable income, a blanket CAD40,000 exemption is permitted. Individuals pay the greater of the regular tax or the minimum tax. If the minimum tax exceeds the regular tax, the excess amount may be carried forward for seven years. The carryforward amount may be used to reduce regular tax to the extent that regular tax exceeds minimum tax.
The 2023 Federal Budget proposes significant changes to the existing AMT regime for tax years ending after 2023. The key changes to the AMT regime include changes to the calculation of adjusted taxable income, increase in the exemption to CAD173,000 for the 2024 tax year (subsequent years to be indexed to inflation) and an increase in the AMT tax rate to 20.5% of adjusted taxable income.
Relief for losses. In general, business losses not utilized in the year incurred may be deducted from taxable income earned in the three years preceding the year of loss or in the 20 years following the year of loss.
B. Other taxes
Estate and gift taxes. Canadian succession law does not include an estate or gift tax. However, provincial probate fees may apply at rates that vary depending on the province.
In the year of death, the income of a deceased taxpayer includes income on an accrual basis from all sources up to the date of death, including accrued capital gains and losses. Various provisions alleviate hardship caused by the taxation of income and capital gains on an accrual basis at death. Among these provisions are the options to file a separate tax return for certain types of income and to tax the beneficiaries on certain transferred amounts. Special tax-free rollover provisions are available for property transferred to the Canadian-resident spouse or common-law partner of the deceased or to a qualifying trust for the benefit of the spouse or common-law partner, and for transfers of farm property to a child of the deceased.
Foreign home buyer’s taxes. The provinces of British Columbia and Ontario have implemented foreign home buyer’s taxes that apply to non-Canadian citizens and nonpermanent residents of Canada. In British Columbia, the tax is levied on the value of the property being acquired in specified areas at a rate of 20%. The Ontario rate is 25%.
Furthermore, in British Columbia, the Speculation and Vacancy Tax has been implemented with respect to certain properties located in certain urban centers. For Canadian citizens or permanent residents of Canada who are not members of a satellite family, the tax rate is 0.5% of the property’s assessed value. The tax rate for foreign owners and satellite families is 2% of the property’s assessed value. A satellite family is defined as persons who declare less than 50% of their total combined household income for the year on a Canadian income tax return. This could apply even if an individual is a Canadian citizen or British Columbia resident. Certain exemptions exist.
Recent legislation has introduced an Underused Housing Tax that is effective from 1 January 2022. The legislation provides that every person who is an owner (excluding owners who are Canadian citizens or permanent residents of Canada) of a residential property in Canada as of 31 December of a calendar year are subject to a 1% tax on the taxable value of a property and requires the filing of a tax return, which is due 30 April of the following year. The amount of tax payable is deemed to be zero if the property is the owner’s or the owner’s spouse or commonlaw partner’s primary place of residence, or if the qualifying occupancy period is 180 days or more in the year. Certain other exemptions apply. In addition, the Canadian government has introduced restrictions that would prohibit individuals who are not Canadian citizens or permanent residents from acquiring non-recreational, residential property in Canada for a period of two years, subject to certain exemptions.
C. Social security
Contributions. Individuals employed in Canada and their employers must each make Canada Pension Plan (CPP) contributions at a rate of 5.95% on salaries, which includes the 1% enhanced CPP contribution. Contributions to the Quebec Pension Plan, when applicable, are made at a rate of 6.4%. For 2024, the maximum amount of earnings subject to CPP contributions is CAD68,500, with a basic exemption of CAD3,500. This results in a maximum annual CPP contribution for employers and employees of CAD3,867.50 each. Self-employed individuals must pay both portions for a maximum annual contribution of CAD7,735.00. Quebec Pension Plan contributions are subject to the same thresholds, resulting in maximum employers’ and employees’ contributions of CAD4,160 and self-employed individuals’ contributions of CAD8,320. If the employment income exceeds CAD68,500, the employee and employer must contribute to the additional plan under the Quebec Pension Plan at a rate of 4% on the earnings between CAD69,400 and CAD73,200. Selfemployed individuals are required to contribute to the additional plan under the Quebec Pension Plan at a rate of 8%.
Employment insurance premiums are also payable. For 2024, an employee’s required employment insurance premiums are calculated at a rate of 1.66% on the maximum annual amount of insurable earnings of CAD63,200. This results in a maximum annual premium of CAD1,049.12. Employers must make contributions equal to 1.4 times the amount of the employee’s premiums, up to CAD1,468.77. The federal employment insurance premiums for Quebec residents are lower. The premium rates are 1.32% for employees and 1.848% for employers. Quebec has lower rates because Quebec residents also participate in the Quebec parental insurance plan. For 2024, an employee’s required premiums under the Quebec parental insurance plan are calculated at a rate of 0.494% on the maximum annual amount of insurable earnings of CAD94,000. This results in a maximum annual employee premium of CAD464.36 for the Quebec parental insurance plan. Employers must make contributions equal to 1.4 times the amount of the employee’s premiums, up to a maximum of CAD650.48.
If employees are at least 65 but under 70 and work while receiving government pension amounts, employees must continue to make contributions to the plan unless they file an election not to contribute. Also, if employees are under 65 and work while receiving a CPP retirement pension, both the employee and the employer must make government pension plan contributions. While contributing during this period, the number of years of low or zero earnings are automatically dropped from the calculation of CPP retirement pension distributions.
Coverage. The following table shows the maximum monthly amounts of the listed CPP benefits for 2024 (the Quebec Pension Plan provides similar benefits).
The maximum amounts shown above are paid to a person who begins to receive benefits at 65 years of age. The pension amount is reduced if a person chooses to begin receiving benefits before reaching 65 years of age (and as early as age 60) and is increased if the person delays beginning taking the pension until after age 65, up to the age of 70.
Canadian resident individuals or employers may have to contribute to health care plans operated by the provinces. Most hospital bills and physicians’ fees, including those for drugs and dental care in some provinces, are covered by these plans.
Totalization agreements. To provide relief from double social security taxes and to assure benefit coverage, Canada has entered into totalization agreements with the jurisdictions listed below. The agreements usually apply for a maximum of two to five years.
Albania Grenada Peru
Antigua and Guernsey and Philippines
Barbuda
Jersey Poland
Australia (c) Hungary Portugal
Austria Iceland
Barbados India
Belgium Ireland
Brazil
Romania
St. Kitts and Nevis
St. Lucia
Israel (a)
St. Vincent and the Bulgaria Italy Grenadines
Chile Jamaica Serbia
China Japan Slovak Republic
Mainland (a) Korea (South) Slovenia
Croatia Latvia Spain
Cyprus Lithuania Sweden
Czech Republic
Luxembourg Switzerland
Denmark Malta
Trinidad and Dominica Mexico Tobago
Estonia Morocco Türkiye
Finland Netherlands United
France
Germany
Greece
New Zealand (c) Kingdom (a)(b)
North Macedonia
United States
Norway Uruguay
Double tax treaties. Canada has negotiated double tax treaties with most major industrialized nations and many developing nations. All treaties negotiated after 1971 generally follow the provisions of the model treaty developed by the OECD. Many treaties currently in force were negotiated prior to 1972 and may vary significantly from the OECD model treaty.
Double tax treaties have been entered into with the following jurisdictions.
Algeria
Iceland Peru
Argentina India Philippines
Armenia Indonesia Poland
Australia (b)
Ireland Portugal
Austria Israel Romania
Azerbaijan Italy
Russian Federation
Bangladesh Jamaica San Marino (b)
Barbados
Japan Senegal
Belgium (a) Jordan Serbia
Brazil (b) Kazakhstan Singapore
Bulgaria Kenya Slovak Republic
Cameroon Korea (South) Slovenia
Chile
China
Kuwait
Kyrgyzstan
South Africa
Spain
Mainland (b)(c) Latvia Sri Lanka
Colombia Lebanon (a) Sweden
Côte d’Ivoire
Lithuania
Switzerland (b)
Croatia Luxembourg Taiwan
Cyprus Madagascar Tanzania
Czech Republic Malaysia (b) Thailand
Denmark Malta Trinidad and Tobago
Dominican Mexico
Republic
Moldova
Tunisia
Türkiye
Ecuador Mongolia Ukraine
Egypt Morocco United Arab
Estonia
Finland
Namibia (a) Emirates
Netherlands (b)
France New Zealand
United Kingdom
United States
Gabon Nigeria Uzbekistan
Germany (b)
Norway Venezuela
Greece Oman Vietnam
Guyana Pakistan Zambia
Hong Kong
Hungary
Papua New Zimbabwe
Guinea
(a) This treaty has been signed, but it is not yet in force.
(b) This treaty is under negotiation or renegotiation.
(c) This treaty does not apply to Hong Kong; a separate treaty with Hong Kong is in force.
F. Temporary permits
Entry visas. Unless he or she is a citizen of a visa-exempt country, an individual who is not a citizen or permanent resident of Canada and who wishes to enter the country as a tourist, business visitor, student or foreign worker must obtain a Temporary Resident Visa before entering Canada. Applications must be submitted online through the Immigration, Refugees and Citizenship Canada website.
Electronic travel authorization. A foreign national who is exempt from the above requirement to possess a travel entry visa (for example, most citizens of a European Union country, Australia and Japan) must first obtain an electronic travel authorization (eTA) before departing for Canada when arriving by air for visitor, temporary work or study purposes. An eTA is normally valid for five years or for the duration of the traveler’s passport, whichever is shorter. The application and approval process is normally very fast for most travelers, but must be completed and approved before departure in order for the airline to allow the traveler to board the aircraft. It is recommended that a traveler apply for his or her eTA as soon as possible in advance of travel to Canada to avoid having to reschedule travel in the event of a delay in processing. Citizens and lawful permanent residents (that is, valid green card holders) of the United States are exempt from the eTA requirement and can travel to Canada without a visa or eTA.
Biometrics. Canada expanded the requirement for biometrics for most foreign nationals traveling to Canada. Applicants for visitor visas, study or work permits or permanent residence in Canada subject to the biometric requirements are required to provide their fingerprints and photographs. In most cases, biometrics only need to be provided once every 10 years. US citizens are exempt from the requirement for temporary status as well as children under the age of 14 years and those over the age of 79 years. Visa-exempt nationals may also be able to provide biometrics at one of eight major Canadian airports where fingerprint verification will be conducted at inspection kiosks.
Tourists. An individual wishing to enter Canada as a tourist must generally first secure a Temporary Resident Visa from a consulate outside Canada or, in the case of visa-exempt foreign nationals, an eTA (see Electronic travel authorization). Citizens and lawful permanent residents (that is, valid green card holders) of the United States are exempt from the eTA and Temporary Resident Visa requirement. Visitors are generally admitted to Canada for periods of up to six months after the original date of entry. An application for an extension may be submitted from within Canada, depending on the circumstances.
Business visitors. An individual wishing to enter Canada as a business visitor generally must first secure a Temporary Resident Visa or, in the case of visa-exempt foreign nationals, an eTA (see Electronic travel authorization). US citizens and lawful permanent residents are exempt from the visa and eTA requirement. A foreign national may enter Canada as a business visitor, without obtaining a work permit, in certain limited instances. In general, these instances are limited to foreign nationals engaging in international business activities in Canada, without directly entering or competing in the Canadian labor market or providing services to a Canadian entity. Common circumstances in which a foreign national may enter Canada as a business visitor include the following:
• Foreign nationals attending business meetings or conferences
• Foreign nationals seeking to purchase Canadian goods or services or receiving training and familiarization with such goods or services
• Foreign nationals giving or receiving training with a Canadian parent or subsidiary of the corporation that employs the foreign national abroad
• Foreign national sales representatives who come to Canada to sell goods (or services) manufactured outside Canada, if they do not sell to the general public
G. Work permits
With few exceptions, most individuals providing services in Canada’s labor market require a work permit, regardless of duration of stay or source of income. Admission to Canada is generally granted for a specific purpose and is time-limited. All foreign nationals seeking entry to Canada must ensure that they have the appropriate status for their intended activities and length of stay.
The federal government, through Service Canada and Employment and Social Development Canada, is responsible for ensuring that the Canadian labor market is not negatively affected by the employment of foreign nationals in place of Canadian citizens or permanent residents. Unless exempted, a foreign worker may apply to Immigration, Refugees, Citizenship Canada (IRCC) for a work permit only after Service Canada has provided a Labor Market Impact Assessment (Confirmation) (LMIA; see Labor Market Impact Assessment) to the employer that a job may be offered to a foreign worker. However, in several occupations and circumstances, an employer may be exempt from the requirement to obtain an LMIA and the qualifying employee may apply directly to IRCC for a work permit (see Exempt categories).
Labor Market Impact Assessment. In general, unless a foreign national meets the criteria for an exemption, a LMIA is required before the foreign national can apply for a work permit (see Exempt categories). Typically, the LMIA process requires the employer to demonstrate to Service Canada that a job offer to a foreign worker is likely to have a positive or neutral impact on the Canadian labor market. In reaching its opinion, Service Canada considers a number of factors, including the efforts made by the employer to recruit Canadians for the position, whether the work will result in direct job creation or retention for Canadians, and whether the work will result in the creation or transfer of skills and knowledge for the benefit of Canadians.
In addition, Service Canada assesses the genuineness of a job offer, the ability to transition the job to a Canadian in the future, its consistency with the terms of applicable federal-provincial/territorial agreements, whether the foreign worker will be paid a prevailing wage in Canada, and the employer’s past history of compliance with the conditions of previous job offers to foreign nationals.
After Service Canada is satisfied that the above criteria are met, it issues a positive LMIA confirming the job offer to the foreign worker, who must then submit an application for a work permit online through a visa office or at a port of entry, if eligible to apply upon arrival in Canada.
Work permit applications must be submitted before expiration of the LMIA and are issued for a specific time period, which coincides with the recommended duration stated in the LMIA,
usually between one to three years. A work permit extension may be applied for online through an IRCC processing center in Canada with the support of a new LMIA or proof of eligibility for an LMIA exemption. A transition plan is required for most high-skilled positions, outlining how the role will be transitioned to a Canadian citizen or permanent resident. If a foreign worker is contemplating a longer stay, he or she should consider obtaining Canadian permanent resident status.
Foreign workers employed in lower-skilled and lower-wage occupations have greater restrictions on their ability to work in Canada or apply for permanent residence.
Global Talent Stream. The Global Talent Stream, which is a subset of the Temporary Foreign Worker Program, allows innovative firms in Canada a more streamlined process to obtain an LMIA and hire highly skilled foreign talent when they can demonstrate that there are benefits to the Canadian labor market. As part of the application process, employers are either referred by a designated partner organization or they are eligible to hire highly skilled workers for one of the occupations listed on the Global Talent Occupations List. A labor market benefits plan is required instead of formal public recruitment and a transition plan.
Exempt categories. Canadian immigration legislation and policy outlines the circumstances under which a work permit may be issued without an LMIA. Exempt categories include work that will result in significant economic, social or cultural benefits for Canada, international treaty-based permits and other occupationspecific exemptions.
The most common LMIA-exempt categories are discussed below.
Free trade agreement professionals. As of 1 July 2020, the new Canada-United States-Mexico Agreement (CUSMA) entered into force. This new agreement replaced the North American Free Trade Agreement (NAFTA) while preserving the same requirements and guidelines regarding work permit applications. The CUSMA provides a special opportunity for US and Mexican citizens to secure a Canadian work permit without obtaining an LMIA. Applicants with certain education and skill levels may accept job offers from Canadian employers in listed professions. For certain professions, licensing in Canada may also be required. Listed professions include, among others, accountants, architects, economists, engineers, hotel managers, lawyers, librarians, management consultants and scientists. Canada has also entered into free trade agreements with Chile, Colombia, Korea (South), Panama and Peru, which provide similar benefits to professionals of those countries. The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA), which includes mobility provisions for key personnel, contractual service providers and short-term business visitors, has also been implemented. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) applies to citizens of the signatory parties as well as to permanent residents of Australia and New Zealand. The Agreement on Trade Continuity between Canada and the United Kingdom (CUKTCA) includes the same provisions as CETA but applies to nationals of
Global Skills Strategy. The Canadian federal government has launched the Global Skills Strategy (GSS) to support faster access to high-skilled talent in Canada and to help Canadian businesses support the creation of jobs for Canadians. The program includes a multipronged approach, including faster consular processing times for high-skilled work permit applications (National Occupation Classification under Training, Education, Experience and Responsibilities category 0 or 1 occupations), establishment of a dedicated service channel for referred companies looking to make significant job-creation investments in Canada, introduction of a simplified process to allow the entry of short-term, highly skilled workers for a limited duration of up to 30 days within a 12-month period, and a more consistent service standard for LMIA applications for high-skilled, in-demand positions supported by a labor market benefits plan.
H. Permanent residence status
The following descriptions apply to permanent residence outside the province of Quebec. Individuals intending to settle in Quebec should consult with Quebec-based professionals to obtain relevant information.
Express Entry. Express Entry refers to the intake management system used by IRCC to invite potential economic immigrants to apply for permanent residence to Canada. Potential immigrants who meet the criteria for one or more of the permanent residence streams including, but not limited to, the Federal Skilled Worker Program (FSWP), Canadian Experience Class (CEC) or certain Provincial Nominee Programs (PNP) are required to submit an online profile using the Express Entry system. Individuals are then assessed a Comprehensive Ranking System (CRS) score based on several factors including the following:
• Age
• Education
• Language ability in English and/or French
• Previous work experience
Potential applicants are then entered into the “Express Entry Pool.” Draws are held periodically (historically every two to four weeks) and those with the highest CRS scores or with certain skills and experience are invited to submit a permanent residence application. Only those with an invitation to apply are eligible to proceed with the submitting of an application for permanent residence. Applicants will then have 60 days to complete a full application online, including the completion of medicals, obtaining police clearances and providing required support documentation. The processing standard is six to eight months following submission of the full application, subject to current government processing priorities.
Federal Skilled Worker Program. The Federal Skilled Worker Program (FSWP) is based on a points-based assessment, which requires applicants to meet a minimum points threshold, based on the following:
• Age
• Education
• Work experience
• Adaptability to Canada factors
To qualify for immigration under the FSWP, an applicant must be assessed at least 67 out of a possible 100 points.
At a minimum, the applicant must have at least one year of work experience in a skilled occupation, demonstrate that he or she meets the minimum language proficiency requirements in French or English, and have his or her foreign educational credentials formally assessed to determine equivalency to Canadian education levels.
The applicant must also demonstrate that he or she meets the minimum language proficiency requirements in French or English.
Canadian Experience Class. The Canadian Experience Class (CEC) recognizes that certain individuals have the qualities to make a successful transition from temporary to permanent residence and can contribute to the Canadian economy. It is a simplified program that allows certain high skilled temporary foreign workers to remain permanently in Canada and apply for permanent residence from within Canada. To be eligible under the CEC, the applicant must be proficient in English and/or French and must have obtained at least 12 months of full-time (or an equal amount of part-time) skilled work experience in Canada in the three years before the application is made.
CEC applicants must also submit the results of a designated third-party English or French language proficiency assessment to meet language proficiency requirements.
Provincial nominee programs. Under agreements between the provincial and federal governments, provinces are able to nominate candidates for permanent residence in Canada if the applicant has the intention to settle and establish themselves in a particular province. Program criteria differ between provinces but the overriding principle is that applicants have skills or resources in demand in the particular province, that they have a job offer from an employer in the province, and that the applicants intend to reside permanently in such province. Certain provinces also have programs for immigrant entrepreneurs. It is recommended that potential applicants consult with an authorized Canadian immigration representative to confirm eligibility criteria for specific provincial streams and whether applications are currently being accepted (there are limited numbers of nominations available each year).
I. Family and personal considerations
Family members. The legally married spouse or common-law partner and any dependent children (under the age of 22 years and who do not have a partner/spouse) of a holder of a Canadian work permit in a high-skilled occupation may seek to enter and reside in Canada for a term concurrent with the principal holder’s work permit. These family members are usually issued Visitor Records, if required, to document their status as accompanying family members. Study Permits for minor children are not required to attend primary and secondary schools unless the children require Temporary Resident Visas to enter Canada. Attendance at a post-secondary institution requires a letter of
acceptance from that institution prior to the issuance of the Study Permit. Study Permits are not required if the student is enrolled in a short-term program in Canada of six months or less.
In many instances, married spouses and common-law partners, including same-sex couples, may be eligible for work permits if their spouse/partner is in Canada on a work permit or a study permit and if they meet the administrative criteria of the program.
Driver’s permits. Foreign nationals may drive temporarily in Canada using driver’s licenses from their home countries. Because each Canadian province issues driver’s licenses independently, rules for foreigners vary. In general, foreign nationals have 60 days from the time of their arrival in Canada to obtain a Canadian driver’s license. Depending on the province, an eye examination and a driving examination may be required. Insurance coverage requirements should also be reviewed.
Criminal and medical inadmissibility. Foreign nationals who have committed or been convicted of an offense in any jurisdiction may be criminally inadmissible to Canada. An assessment should be completed by an authorized Canadian immigration representative prior to making an application to Canadian immigration authorities to confirm whether the foreign national is eligible to enter Canada or whether a Temporary Resident Permit or Rehabilitation application may be required. Foreign nationals may be inadmissible to Canada on health grounds if they are likely to pose a danger to public health or safety if they may reasonably be expected to cause excessive demand on health or social services. It is suggested that advice be sought from an authorized Canadian immigration representative if a foreign national or immediate family member have any serious medical conditions.