For more information on Banking System in Canada, click here.
You can open an account at a bank, a credit union or a trust company. Before you choose a place to bank, find out what kind of accounts it has. Ask questions about banking charges and interest on your money. Most banks pay you interest on the money on your accounts. A bank may charge you for the services it provides.
You can pay by cash, cheque, credit card or debit card.
- Cash are coins and bills. Cheques are sometimes used instead of cash and are used to tell banks that you are paying with your money. In order to pay with a cheque you must present a valid proof of identification with a photo ID.
- Credit cards let you buy things now and pay later. You can get bank credit cards, such as Visa and MasterCard. You can also get credit cards from department stores or gas companies. If you do not pay the full amount on time you have to pay interest. The interests on some credit cards are higher than on others, so check the interest rates carefully.
- Debit cards can be used to buy things in many stores. When you use a debit card, the money comes out of your bank account immediately. You get these cards from the bank or credit union
Watch this video series: Newcomers to Canada and the Canadian Tax System
For more information about Federal taxes visit the Canada Revenue Agency website.
Everyone in BC has to fill in an income tax form each year and send it to the federal government by April 30. This form determines how much tax you pay on your income. It also determines if you qualify for tax credits. Employees have income tax taken off their paycheques. The government returns some money because too much tax was taken off your paycheque or you may have to pay more because not enough tax was taken off.
Even if you had no income in Canada, you must still fill out and send in a tax form to receive credits you may be eligible for. The type of credits that you may be eligible for include: the GST/HST credit, the Canadian Child Tax Benefit, the Universal Child Care Benefit and the Working Income Tax Benefit. You also have to report any income from outside Canada. People who are not working must pay tax or any income from investments.
Learn About BC Provincial Taxes here.
- BC Sales Tax (PST)
You pay 7% provincial sales tax on many goods and services you buy in BC. For more information, please visit this site.
- Goods and Services Tax (GST)
You pay 5% federal sales tax on many goods and services you buy in Canada. For more information, please visit here.
- BC Sales Tax (PST) and Goods and Services Tax (GST) Credit
You may be able to claim a refundable tax credit when you file an income tax return. For more information, please visit here.
For more information about taxes visit the Government of Canada website or call 1-800-959-8281.