When it comes to filing taxes in Canada, having a Tax Identification Number (TIN) is crucial.

If you're a resident Canadian, you probably haven't needed to think about yours in a while (it's just your SIN). However, if you're a non-resident who owns a home in Canada, it's something you'll need to understand ahead of tax season this year.

In this guide, we'll cover:

• What are the different tax ID numbers?
• How to apply for them
• Special considerations for non-residents applying for tax numbers

By the way — as a homeowner, your property represents a significant source of cash for funding everyday expenses or a business venture. However, if you're a non-resident, you typically need an ITN to access home equity—though Lotly only works with Canadian residents. If you qualify, we partner with 50+ lenders nationwide to find the best home equity loan options for your financial situation. Current resident of Canada and own a home? Get a free consultation today to learn more.

What is a Tax Identification Number?

The Tax Identification Number (TIN) is a unique number assigned to individuals and businesses by the Canada Revenue Agency (CRA)  for tax purposes. It is commonly known as the Social Insurance Number (SIN) for individuals, the Individual Tax Number for non-residents, and the Business Number (BN) for businesses.

ITN vs. SIN vs BN in Canada

• The Individual Tax Number (ITN) is for non-residents who need to file a Canadian tax return or conduct business in Canada. You may need one as a foreign business owner, student, or employee.
• The Social Insurance Number (SIN) is for Canadian citizens and permanent residents. It is used for identification purposes and to access government benefits and services. If you were born in Canada, you probably already have one.
• The Business Number (BN) is used by businesses and organizations to identify themselves when dealing with the government. It is required for tax purposes, hiring employees, and importing/exporting goods.

Why do you need a Tax Identification Number?

A SIN or ITN is required for all residents of Canada to file taxes, work legally, access government services, and receive benefits such as the Canadian Pension Plan (CPP) or Employment Insurance (EI).

The BN is necessary for businesses conducting transactions with the government, hiring employees, and obtaining permits. It also allows companies to claim input tax credits on goods and services taxes paid to suppliers.

Steps to apply for a Tax Identification Number in Canada

How to get a Social Insurance Number (SIN)

1. Determine your eligibility: You must be a Canadian citizen, permanent resident, or temporary resident with a valid permit to work in Canada.
2. Gather the required documents. These include proof of identity and immigration status, such as a birth certificate, passport, or permanent resident card.
3. Fill out the application form: The SIN application form can be found online on the Government of Canada website or at any Service Canada office.
4. Submit your application: You can apply online, in person at a Service Canada office, or mail in your completed form and supporting documents.

How to get an Individual Tax Number (ITN)

1. Determine your eligibility: You're eligible for an ITN if you are not eligible for a SIN, but need to file taxes or receive government benefits.
2. Gather specific identity documentation:  This includes a valid passport, driver's license, study permit, or some kind of government-issued ID card.
3. Apply online or via mail:  You can apply for an ITN online through the Canada Revenue Agency website or by mail using Form T1261.
4. Wait for processing: Processing times may vary, but you should receive your ITN within 8-10 weeks after submitting your application.

How to get a Business Number (BN)

1. Register for a BN online: You can register for a BN through the CRA's Business Registration Online (BRO) service.
2. Gather required information: This includes business name, description of activities, and location.
3. Determine if additional registrations are needed: Depending on your business type, you may need to register for other accounts such as payroll deductions or GST/HST.
4. Submit your application: Once you have completed the registration process, you will receive a BN confirmation letter and can begin doing business in Canada.

Tips for non-residents who need a TIN/ITN

Gathering supporting documents for your ITN Application

1. Ensure all documents are up-to-date: When applying for an Individual Tax Number (ITN) double-check the expiration dates on your passport, study permits, and any other forms of identification to avoid delays in processing. 
2. Make copies of your documents: Always create photocopies or scans of your supporting documents in case the originals are misplaced during the application process. 
3. Translate documents if necessary: If any of your documents are not in English or French, ensure they are professionally translated and include certified translations alongside the originals. 
4. Organize your documents systematically: Arrange your documents in a clear and logical order to streamline the application process and reduce the likelihood of missing any requirements. 
5. Verify document requirements: Check the Canada Revenue Agency website or contact their support services to confirm you have included all necessary documentation specific to ITN applications. 

Best practices for filing taxes as a non-resident in Canada

1. Determine your residency status: Before filing taxes, it is important to determine whether you are considered a resident or non-resident of Canada for tax purposes. This will impact the types of income you need to report and the deductions and credits you may be eligible for.
2. Understand your tax obligations: Even if you’re a non-resident, you must still report any income you earn in Canada. This includes employment income, rental income, investment income, and more.
3. Find out if you are eligible for any exemptions or deductions: Non-residents may be able to claim certain exemptions or deductions on their Canadian tax return. These can include treaty benefits, moving expenses, and tuition fees.
4. Consider using tax software or hiring a professional: Filing taxes as a non-resident can be complex, so it may be helpful to use tax software or hire a professional to ensure accuracy and compliance with Canadian tax laws.
5. Keep track of important deadlines: The deadline for filing taxes in Canada varies depending on your residency status and the type of income you earn. Knowing these deadlines is essential to avoiding penalties or interest charges.
6. Be aware of any additional reporting requirements: Non-residents may also have additional reporting requirements, such as Foreign Account Tax Compliance Act (FATCA) reporting, if they have financial assets outside of Canada.
7. Keep thorough records: It is crucial to keep detailed records of all income earned in Canada, as well as any expenses or deductions claimed on your tax return.
8. File your taxes on time: Non-residents who owe taxes in Canada are still required to file their tax return on time, even if they cannot pay the full amount by the deadline. Failing to file on time can result in penalties and interest charges.

Achieve your financial goals with Lotly

First, let's recap some key learnings from this guide:

• Distinguish the correct tax ID for your needs. Canada offers the Social Insurance Number (SIN) for citizens/residents, the Individual Tax Number (ITN) for non-residents, and the Business Number (BN) for businesses.
• Follow the designated steps to apply for each TIN type. They involve gathering the correct documents, completing forms, and meeting eligibility criteria through online or mail-in processes.
• Plan carefully if you’re a non-resident to fulfill extra requirements. This includes verifying your residency status, organizing documents for ITN applications, and understanding tax obligations to avoid penalties.

Now that you have a better understanding of how to obtain a tax ID in Canada, you can strive towards achieving your financial goals.

Taxes can be confusing if you're a non-resident homeowner, and getting loans can be even harder. With the right tools, you can unlock your property value to pay for renovations, fund a business, cover tuition, and more — but you may run into challenges with lenders.

Lotly works with more than 50 lenders across the country to find you a fair and stable loan, tailored to your financial situation and needs.Are you a resident in Canada and own a home?  Book a free consultation today to learn how we can help.

Frequently Asked Questions

What documents are needed to apply for a TIN?

The specific documents needed may vary depending on the type of tax ID you are applying for. Generally, you must provide proof of identity (such as a passport or government-issued ID), proof of residency (such as a lease agreement or utility bill), and other supporting documents, such as work permits or letters from employers.

How long does it take to get a TIN?

It can take 6-8 weeks for non-residents to get a Tax ID number (ITN) and 4-6 weeks for residents to get one. However, processing times may vary depending on the volume of applications and any additional requirements needed.

Can I use my TIN for other purposes besides tax-related matters?

Yes, your TIN can be used for other purposes such as opening a bank account, applying for specific government programs or benefits, and conducting business transactions. Keep your TIN safe and secure to avoid any potential identity theft or fraud.

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