Canada

Canada By HuntiT team

IT Industry

There are over 36,000 companies in the Canadian Information and Communications Technologies (ICT) sector. The vast majority (over 32,000) fall within the software and computer services industries.

The ICT sector consists mainly of small companies, with over 31,000 of them employing fewer than ten people. The number of large corporations employing over 500 individuals is relatively small, accounting for approximately 120 firms, including subsidiaries of foreign multinational corporations.

Manufacturing stands out as the sub-sector with larger companies. In 2014, 14.5% of ICT manufacturing companies had more than 50 employees, while across the whole ICT sector this share was only 3.1%.

Canada needs 182,000 people to fill positions for information systems analysts and consultants, computer and network operators, Web technicians, software engineers and others in by 2019, according to an IT labor market report released this week.

There are about 811,200 information communication and technology professionals currently employed in Canada, but provinces across the country will require an additional 182,000 ICT talent by 2019.

Most employers will still have difficulty recruiting individuals with the right blend of technical and business skills. “Unless adequately addressed, this will cause particular strife to Canada’s prosperity, as growth in Canadian workers’ productivity levels has fallen notably since 2001,” according to the report.

Visa

You need a work permit if you are not a Canadian citizen or a permanent resident and you want to work temporarily in Canada.

To apply for work permit, an employer needs to obtain LMIA. An LMIA is a document from Employment and Social Development Canada (ESDC) that gives the company permission to hire a temporary worker.

ESDC will assess the company’s LMIA application to determine what impact hiring a temporary foreign worker would have on Canada’s job market. ESDC will issue a positive or negative LMIA letter to the employer. Your employer should give you a copy of this letter to include with your application for a work permit.

The LMIA is usually given for a given period of time and the work permit issued will match that period. If you want to renew your work permit beyond this time, you will likely need a new LMIA.

Once required documents submitted, work permit processing will take about seven weeks.

Taxes

Taxation in Canada is a shared responsibility between the federal government and the various provincial and territorial legislatures.

Federal tax rates are progressive (15%-33%) and withheld directly by employer.

  • 15% on the first $45,282 of taxable income, +
  • 20.5% on the next $45,281 of taxable income (on the portion of taxable income over $45,282 up to $90,563), +
  • 26% on the next $49,825 of taxable income (on the portion of taxable income over $90,563 up to $140,388), +
  • 29% on the next $59,612 of taxable income (on the portion of taxable income over $140,388 up to $200,000), +
  • 33% of taxable income over $200,000.

As well there are Provincial taxes. Tax for all provinces (except Quebec) and territories is calculated the same way as a federal tax.

Provincial taxes vary starting with 4% minimum tax ( on the first $43,176 of taxable income) in Nunavut and maximum of 21% (on the amount over $150,000) in Nova Scotia.

Cost of Living

The cost of living in Canada is high, but when compared to other parts of the world, such as Western Europe, it is relatively cheaper.

There are significant differences in the cost of living in Canada between rural areas and major cities such as Toronto or Vancouver, which can be very expensive.

Expats living in Canada should expect to spend about 35 to 50 percent of their income on housing and utilities, including rent (or a mortgage), heating, electricity, phone and water. Under Canadian law, if a person chooses to own a car, it must be insured and registered with the provincial government, which is quite expensive. Moreover, expats in Canada spend approximately 15 percent of their income on food (which can significantly increase if eating in restaurants) and about six percent on clothing.

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