Steve_

It's not zero rated, there is no PST in Alberta at all. Zero-rated means an entirely different thing (i.e. you can claim back against things on which PST is charged).

HST is not GST + PST either, HST is applicable to the same things as GST (usually, there are some exceptions to that in BC and Ontario), whereas PST applies to whatever a province sets it to.

This is why people are going crazy against HST in BC, because previously a lot of things only had GST applied and were exempt from the PST.

What I find quite fascinating about the GST guide is that it appears to be pretty much a copy and paste job from the VAT guide in the UK, with some minor alterations.

Steve_

I'm not talking about GST, I'm talking about income taxes and payroll taxes. BC has a progressive rate of income tax at the provincial level, whereas in Alberta it is flat, so in Alberta we have ended up in this stupid situation of people on lower incomes (and I don't mean low, I mean less than about $75,000) paying more income tax than people in BC so now there are calls in Alberta to raise the minimum wage which wouldn't be necessary if we had the same rates as BC.

If you take into account the difference with HST and GST you may pay less in Alberta, but if you're on minimum wage most likely you're more likely to be using public transport (i.e. no gas) and not be buying large amounts of consumer items, so you're worse off from a tax standpoint.

cheeky_monkey

Overall the amount im taxed on my wages is not too different to what i was taxed in the UK..the difference is the indirect taxes..well in Alberta anyway.

us3andthedog

Many Thanks

Just wanted to check also, do you also have to complete a tax return each year,even if you are taxed each month?

JonboyE

In practice, yes.

iaink

Yup, every year. Usually you dont get the "T4" from your employer before late february, and its a bit hard to do without it. Same with the bank interest reporting forms if you are lucky enough to make more than $50 in interest....

Steve_

You are legally required to submit a personal tax return each year by April 30th (or June 15th if you are self-employed) unless you are exempt for some obscure reason, but the main reason you wouldn't is if your income is below the personal exemption limit, which for anyone working full-time would not be the case.

There is a newcomer's guide to Canadian taxes on the CRA website, I suggest you read it as the first year you do a tax return can be quite tricky, not just because of your unfamiliarity, certain things might need to be pro-rated and you may have things that need to be reported on a T1135 for example, or possibly a foreign tax credit depending on how and when you move: http://www.cra-arc.gc.ca/E/pub/tg/t4055/README.html

Also remember to file a P85 with HMRC and an R105 with any UK bank you maintain accounts with.