Are foreign students in Canada eligible for residency?  Are they eligible for all relevant tax credits?

Kaur Rajdeep

Common tax issues for students

35 Are foreign students in Canada eligible for residency? Are they eligible for all relevant tax credits?

Kaur Rajdeep

Canadian tax residency rules apply equally to everyone. So, if a foreign student meets the Canadian residency requirements, then they are considered to be a tax resident of Canada and are eligible for all relevant tax credits.

As a refresher, tax residency in Canada is assessed based on Primary and Secondary residential ties. Primary residential ties include having dependents, a spouse or a home in Canada. Secondary residential ties include personal property, social ties, a driver’s license, and medical insurance coverage. CRA considers all these factors when assessing an individual’s tax residency status.

A foreign student, if deemed a Canadian resident, is eligible for all relevant tax credits

Foreign students that are considered Canadian residents for tax purposes are eligible for all relevant tax credits (for example, tuition tax credits). The tax credits available to non-residents are more complicated and I suggest you go to the CRA guide (link in references) for further details.

The Canadian tax system is based on residency, not citizenship; Therefore, if an international student is a resident, they should enjoy the benefits just like another resident. So remember, if you are an international student who is considered a resident in Canada for tax purposes, you are eligible for all the tax credits available to a Canadian resident student who was born in Canada.