Glossary of Canadian Terms

Your family's total net income after adjustments, used to calculate eligibility for benefits like CCB and GST/HST Credit.

A parallel tax calculation that prevents high-income individuals from reducing their taxes below a minimum level through tax preferences. Reformed for 2024 with a 20.5% rate.

A Canadian immigration pathway for skilled workers and international graduates to settle in New Brunswick, Nova Scotia, Prince Edward Island, or Newfoundland and Labrador with a designated employer.

An open work permit available to foreign nationals in Canada who have submitted a permanent residence application and whose current work permit is about to expire.

A non-refundable tax credit that allows Canadians to earn a certain amount of income ($16,452 max for 2026) before paying federal income tax.

Fingerprints and a photograph collected by IRCC for identity verification during immigration applications.

A formal insolvency process administered by an LIT that can discharge most unsecured debts, subject to duties, asset rules, and statutory exceptions.

A mandatory survey conducted every 5 years by Statistics Canada to count every person living in Canada and collect demographic data.

A points-based system used to rank Express Entry candidates. Points are awarded for age, education, language skills, work experience, and other factors, with a maximum score of 1,200.

An Express Entry program for people who have gained skilled work experience in Canada and want to become permanent residents.

Free French-language classes for newcomers to Canada, the francophone equivalent of LINC.

The legal status after permanent residence that gives full citizenship rights, including a Canadian passport and voting rights, if eligibility rules are met.

Canada's national standard for measuring English language proficiency for immigration. French is measured by NCLC.

A coding system used to categorize academic programs. Since November 2024, non-degree PGWP applicants must have graduated from a program in an eligible CIP code linked to labour shortages.

A tax-free monthly payment to eligible families to help with the cost of raising children under 18.

A federal benefit helping lower-income Canadians cover the rising costs of groceries and essential goods.

A contributory social insurance program providing retirement, disability, and survivor benefits.

A refundable tax credit for working individuals and families with low income, claimed on your tax return, with advance payments available.

A monthly federal benefit for low-income people aged 18 to 64 who are approved for the Disability Tax Credit, delivered by Service Canada.

The federal agency administering tax laws, collecting taxes, and delivering benefit programs like GST/HST Credit and CCB.

A document issued by IRCC confirming that a person has been approved for permanent residence in Canada. It is used during the landing process and is one of the key documents for initial PR card issuance.

The profit realized when you sell a capital property (stocks, real estate) for more than its adjusted cost base.

A numerical rating (300–900) that reflects your creditworthiness, used by lenders to assess risk.

A detailed record of your credit history maintained by credit bureaus (Equifax, TransUnion) in Canada.

A legal debt-settlement process under the Bankruptcy and Insolvency Act where an LIT helps you offer creditors partial repayment or more time to pay.

Compensation owed to an employee upon termination without cause, as determined by common law rather than statutory minimums.

A federal grant that matches 20% of annual RESP contributions, up to $500 per year per beneficiary.

A letter from a local economic development organization endorsing an immigration candidate for permanent residence under community-driven programs like RNIP or RCIP.

A school approved by a provincial or territorial government to host international students. Only graduates of DLIs are eligible for a Post-Graduation Work Permit (PGWP).

A tax rule treating you as having sold certain properties at fair market value when you leave Canada or upon death.

Capital gains tax triggered by deemed disposition of assets when a taxpayer ceases to be a Canadian resident.

An employer approved by their Atlantic provincial government to hire foreign workers through the Atlantic Immigration Program (AIP).

A community-level organization designated by IRCC to manage the FCIP process locally. EDOs assess candidates, issue certificates of recommendation, and connect newcomers with employers and settlement services.

Canada's online immigration application management system for skilled workers. It manages applications for three federal economic immigration programs and ranks candidates using the Comprehensive Ranking System (CRS).

An electronic authorization for many visa-exempt travellers flying to or transiting through Canada. It does not authorize work or study.

A report verifying whether your foreign education is equivalent to a Canadian credential. Required for Express Entry and some PNP programs.

The federal department responsible for labor market programs, including processing LMIA applications.

A federal program providing temporary financial assistance to Canadians who lost their jobs through no fault of their own.

The legal process by which a landlord ends a tenancy and requires the tenant to vacate the rental unit.

A work permit tied to a specific employer, position, and location in Canada.

Provincial or federal legislation setting minimum workplace standards for wages, hours, overtime, and leave.

Payments from an RESP to a beneficiary for post-secondary education, consisting of government grants and investment earnings.

A federal immigration pilot program that provides a pathway to permanent residence for French-speaking foreign nationals who want to live and work in Francophone minority communities outside Quebec.

One of three Express Entry programs, designed for skilled workers with foreign work experience who want to immigrate to Canada permanently.

An Express Entry program for qualified tradespeople who want to become permanent residents based on their skilled trade qualifications.

A registered account combining tax-deductible contributions (like RRSP) with tax-free withdrawals (like TFSA) for purchasing a first home in Canada.

An immigration program allowing Canadian citizens or permanent residents to sponsor close relatives for permanent residence.

Quebec's French-language integration program offering free classes and financial support to immigrants.

A fast-track work permit program to help Canadian employers hire highly skilled global talent quickly.

A low-risk investment guaranteeing your principal and paying fixed or variable interest over a set term.

A tax-free quarterly payment helping low-to-modest income individuals and families offset the GST/HST they pay.

A monthly non-taxable benefit for low-income OAS recipients in Canada, based on income and marital status.

A one-time tax-free payment issued in July 2023 to help low- and modest-income Canadians with grocery costs; it has ended and is not a recurring benefit.

A multi-stage licensing system for new drivers that gradually increases driving privileges over time.

Federal value-added tax that can apply to dealer vehicle purchases and many taxable supplies in Canada.

A program allowing withdrawal of up to $60,000 from your RRSP to buy or build a qualifying first home, with a 15-year repayment period.

A combined federal-provincial sales tax used in Ontario and participating Atlantic provinces, including many dealer vehicle purchases.

An invitation issued by IRCC to Express Entry candidates with top CRS scores, allowing them to submit a full permanent residence application within 60 days.

The Canadian federal department responsible for immigration, refugee resettlement, and citizenship.

The annual adjustment of tax brackets, credits, and benefit thresholds based on the Consumer Price Index (CPI) to account for inflation. The 2026 indexation factor is 2.0%.

A document that translates your foreign driver's licence into multiple languages, valid for driving temporarily in Canada.

British Columbia's public auto insurance provider, responsible for licensing drivers and vehicle insurance.

The application form used to apply for a Permanent Resident Travel Document (PRTD).

A division of the Immigration and Refugee Board that hears appeals of immigration decisions including sponsorship refusals.

A program allowing youth (18–35) from partner countries to obtain work permits for temporary employment in Canada.

An IEC work permit category for students fulfilling an internship or co-op placement as part of their studies.

Free English-language classes funded by the federal government for newcomers to Canada.

A document an employer in Canada may need before hiring a foreign worker. A positive LMIA shows no Canadian citizen or permanent resident is available for the job.

A program allowing withdrawal of up to $10,000/year (max $20,000 total) from your RRSP for full-time education or training.

A legally binding rental agreement between a landlord and tenant specifying terms, rent, and duration of tenancy.

Ontario's tribunal that resolves disputes between residential landlords and tenants.

A federally licensed professional who administers consumer proposals and bankruptcies in Canada and explains formal debt-relief options.

The tax rate applied to the last dollar of income earned. Only income within each bracket is taxed at that bracket's rate, not your entire income.

British Columbia's provincial health insurance plan that covers medically necessary services for residents.

CRA's online portal where individuals can view tax returns, benefits, RRSP/TFSA limits, and manage their tax affairs.

The Canadian Language Benchmarks equivalent for French. Used to measure French language proficiency for immigration purposes. FCIP requires minimum NCLC 5 in all four abilities.

Canada's national system for classifying occupations by skill type and level, used in immigration programs to determine eligibility.

A notice a landlord in Ontario issues to a tenant for non-payment of rent, starting the eviction process.

A notice a landlord in Ontario uses to end a tenancy because the landlord or a family member requires the unit for personal use.

A person who is not considered a resident of Canada for tax purposes and is taxed only on Canadian-source income.

CRA's electronic tax filing service that allows Canadians to submit their income tax returns online.

An official CRA statement confirming your tax return has been processed, showing your refund, balance owing, and RRSP room.

A tax slip reporting amounts paid or credited to non-residents of Canada, such as dividends, rental income, or pensions.

A form allowing non-residents receiving Canadian rental income to have tax withheld on net rather than gross rental income.

A monthly pension for most Canadians aged 65+, based on years of residence in Canada rather than employment contributions.

A work permit that allows the holder to work for any employer in Canada without restrictions.

Ontario's provincial health insurance plan providing coverage for medically necessary hospital and physician services.

A program allowing Canadian provinces and territories to nominate individuals for permanent residence based on local labor market needs. A PNP nomination adds 600 CRS points.

A provincial or territorial attestation used in many study permit applications to show the applicant fits within Canada’s study permit allocation rules.

A work permit allowing international students who graduated from eligible Canadian institutions to gain open work experience in Canada. Since November 2024, new language and field-of-study requirements apply.

The status granted to immigrants who are not yet Canadian citizens. PRs can live, work, and study anywhere in Canada.

A wallet-sized plastic card issued to Canadian permanent residents. It proves your status and is required to board commercial flights, trains, or buses returning to Canada. Valid for 5 years.

A single-use travel document for permanent residents who are outside Canada without a valid PR card. Allows return to Canada via commercial carrier. Costs $50 and is applied for at a visa office abroad.

A provincial sales tax used in several provinces, with special vehicle rules that can apply to dealer and private purchases.

The location (airport, land border, or seaport) where travellers are formally admitted into Canada by CBSA.

Quebec sales tax, including rules that can apply when registering a vehicle bought from a dealer or private seller.

Quebec's parental insurance plan providing maternity, paternity, parental, and adoption benefits to eligible workers.

A tax-deferred retirement savings account. Contributions are tax-deductible, investments grow tax-free until withdrawal when taxed as income.

A retirement income account RRSP holders must convert to by age 71, with mandatory minimum annual withdrawals.

The requirement for Canadian permanent residents to be physically present in Canada for at least 730 days (2 years) within every 5-year period to maintain PR status.

Government regulations limiting how much a landlord can increase rent annually for existing tenants.

British Columbia's tribunal that resolves disputes between residential landlords and tenants.

A form issued by employers when an employee stops working, used to determine eligibility for EI benefits.

A registered savings plan to help Canadians with disabilities and their families save for long-term financial security.

A tax-sheltered savings account designed to help families save for a child's post-secondary education. Government adds a 20% Canada Education Savings Grant (CESG) on contributions up to $2,500/year per child, and low-income families may qualify for the Canada Learning Bond (CLB).

A federal pilot program (2019-2024) that gave 11 rural and northern Canadian communities the power to recommend immigrants for permanent residence. Closed August 31, 2024 after bringing 5,158+ newcomers with 87% retention rate.

The successor to RNIP, launched January 2025 with 14 communities. A permanent community-driven immigration pathway for rural and northern Canadian communities.

A document that authorizes eligible foreign nationals to study in Canada, usually at a designated learning institution and under specific conditions.

A nine-digit number from Service Canada required for working, accessing government programs, and filing taxes in Canada.

An arrangement where a tenant rents all or part of their rental unit to another person (subtenant).

A payment (typically one month's rent) held by the landlord as protection against damage or unpaid rent.

Compensation paid to an employee upon termination, based on length of service and employment standards legislation.

A multi-entry visa for parents and grandparents of Canadian citizens/PRs, valid for up to 10 years with extended stays.

A clearance certificate non-residents must obtain from CRA when selling taxable Canadian property.

A personalized plan created with a settlement service provider organization that helps AIP applicants and their families prepare for living and working in Atlantic Canada.

The classification system within the NOC that categorizes jobs into six levels (TEER 0-5) based on training, education, experience, and responsibilities required.

A visa counterfoil that lets a visa-required traveller seek entry to Canada as a temporary resident. It is not the same as visitor status or a permit.

A flexible savings account where investment income and withdrawals are completely tax-free. Contribution room accumulates annually for Canadian residents aged 18+.

A tax slip employers issue annually reporting employment income, deductions, and contributions for the previous tax year.

The main personal income tax return form for Canadian residents to report income, claim deductions, and calculate taxes or refunds.

The income tax return that corporations must file annually with CRA to report income and calculate tax payable.

A tax slip and return related to trust income, reporting allocations of income to trust beneficiaries.

A tax slip reporting investment income including interest, dividends, and royalties paid to the taxpayer.

A range of taxable income that is taxed at a specific marginal rate. Canada has five federal tax brackets for 2026, ranging from 14% to 33%.

Quebec's administrative housing tribunal that resolves disputes between landlords and tenants.

Property (e.g., Canadian real estate, certain shares) whose sale by a non-resident triggers Canadian tax obligations.

An agreement between Canada and another country to prevent double taxation and reduce withholding taxes.

A tax slip reporting pension, retirement, annuity, and other income such as scholarships or self-employed commissions.

A tax slip reporting Employment Insurance benefits and other related payments received during the tax year.

A tax slip reporting proceeds from the sale or redemption of securities, used to calculate capital gains or losses.

A tax form issued by educational institutions certifying tuition and education amounts for tax credit claims.

The classification system within the NOC that categorizes jobs into six levels (TEER 0-5) based on training, education, experience, and responsibilities required.

Canada's publicly funded healthcare system providing medically necessary services to all residents regardless of ability to pay.

A document that extends or confirms visitor status inside Canada. It is not a travel visa and does not guarantee re-entry.

A CRA program allowing taxpayers to voluntarily correct past tax errors or omissions with reduced penalties.

A document that authorizes temporary work in Canada. It may be employer-specific or open, and it does not by itself grant permanent residence.

An IEC work permit category allowing youth to work for any employer in Canada for up to one or two years.

Tax deducted at source from payments to non-residents (e.g., 25% on dividends, rent, or pensions).

An IEC work permit category for youth with a job offer in Canada that contributes to their professional development.