Tax for self employed

[kal el]

I´m planing to move to Canada in the next 6 months and I´m planing to be self employed. What is the percentage of tax you have to pay for jobs related to IT.

 

[seton]

This isn't a simple question.

Canada uses a progressive tax rate - i.e. it is based on your income level. Tax rates also differ by province. As a self employed person, it will also potentially differ depending on how you register your business.

Nonetheless, start here http://taxtips.ca/marginaltaxrates.htm

 

[kal el]

Thanks for your help. You have been very helpful. Another question, actually an assumption, please correct me if I´m wrong. I´m assuming on self-employment I will be able to register a company. There fore I have the taxes for the earnings of the register company and my personal taxes (my salary).

 

[Phantom2013]

If you are legal you can register a company. If you are not, you cannot. If you are selfemployed you file one tax return for business and personal. If you register a Corporation, then you file two if you draw a salary from it.

 

[kal el]

Phantom2013 thank you for your help. By legal you mean permanent resident?

 

[scylla]

Phantom2013 thank you for your help. By legal you mean permanent resident?

Yes - permanent resident or Canadian citizen. You must be one of these before you can register a company.

 

[scylla]

Note that if you are not a PR or Canadian citizen, you can't just come to Canada and start working as a self-employed person.

To work in Canada you will first have to find an employer who is willing to offer you a job, that employer must then obtain an approved Labour Market Opinion and request approval to hire you. If the LMO is approved you can then apply for a closed work permit that is tied to that specific employer. If your work permit is approved you can then come to Canada and start working.

 

[kal el]

Note that if you are not a PR or Canadian citizen, you can't just come to Canada and start working as a self-employed person.

To work in Canada you will first have to find an employer who is willing to offer you a job, that employer must then obtain an approved Labour Market Opinion and request approval to hire you. If the LMO is approved you can then apply for a closed work permit that is tied to that specific employer. If your work permit is approved you can then come to Canada and start working.

I had my own ideas of what self employment is. Luckily I have been a dj, music producer... I do work with graphics... so I may qualify, and I have experience, I actually part of music history of Thunder Bay and of Port Elizabeth (South Africa).

 

[scylla]

I had my own ideas of what self employment is. Luckily I have been a dj, music producer... I do work with graphics... so I may qualify, and I have experience, I actually part of music history of Thunder Bay and of Port Elizabeth (South Africa).

It sounds like you are thinking of applying to immigrate through the self-employment immigration program. If so, then unfortunately you won't be in Canada in six months. It takes many years for application to be processed through this immigration stream. I would plan for processing to take 3-5 years for this class (if you qualify).