Being an employee of the United Nations (UN) in Canada is a wonderful chance. But when it comes to taxes, it can become a little confusing. Many UN employees & contractors are not sure whether they need to file taxes in Canada or how to do it correctly. That’s where we come in.

At Calgary Tax Consulting, we assist UN employees in knowing and dealing with their tax obligations while working in Canada. Below are some easy and practical tax tips to assist you in staying in line.

1. Know Your Tax Residency Status

First, determine if you are classed as a resident of Canada for tax purposes. This is based on several factors such as:

• How long you’ve been in Canada
• If you have a home, family, or other connections in Canada
• If Canada is your primary residence

Even if you’re employed by the UN, you could still be a tax resident of Canada. And if so, you need to report worldwide income.

If you are uncertain about your status, we can assist you in examining your situation and directing you accordingly.

2. Know What Income Is Taxable

Most UN salaries are tax-free in Canada, but that doesn’t necessarily mean you won’t have to file a return. The tax-free income is still included in your return in some situations, and other forms of income such as investment income, rental income, or spouse’s income can be taxable.

Also, money earned from freelance or any work outside the UN can be taxable in Canada. Keep records of all income sources always.

3. Organize Your Documents

Keep the following in order:

• Your UN employment contract or offer letter
• Pay stubs or receipt of payment
• Any tax slips (such as T4s, if relevant)
• Travel documentation (to evidence days in/out of Canada)
• Banking or financial documents

Having organized paperwork will simplify the tax return filing and prevent you from encountering problems with the CRA (Canada Revenue Agency).

4. Know Tax Deadlines

The standard filing date for a Canadian personal income tax return is April 30th each year. If your spouse or you are self-employed, you have until June 15th, but you owe the taxes by April 30th.

Late filing of returns attracts penalties and interest charges, though your income is exempt from tax. Therefore, always attempt to file on time.

5. You May Still Gain from Tax Credits

Although your income is exempt, you can still claim some tax credits or deductions, including:

• GST/HST credit
• Canada Child Benefit (CCB)
• Medicines cost
• Fees for tuition
• Contribution to RRSP

These credits can result in refunds or offset taxes on any other income you may have. It’s worthwhile finding out what you’re entitled to.

6. Receive Assistance from a Tax Professional

Canadian tax regulations can be complicated—particularly for foreign or diplomatic personnel such as UN employees. A minor error could result in serious issues with the CRA.

That’s why it’s a good idea to speak with a tax professional who is familiar with your circumstances.

At Calgary Tax Consulting, we have experience helping UN personnel & other foreign employees with their Canadian taxes. We will keep you up-to-date, avoid penalties, & make the most of all entitlements that are available.

Require Tax Assistance?

We’re here for you.

Call Calgary Tax Consulting today for a free consultation. Make your tax filing easy, stress-free, and accurate.

Call us or visit our website to begin.