9.2.1 Who charges you income tax
Canada's federal, provincial and territorial governments require that their residents pay income tax when their income is above a minimum amount. (Each government sets its own minimum amount each year.) This means that most people who earn income above the minimum pay two income taxes: one to the federal government and one to the province or territory they live in.
While each government sets its own tax rules and rates of taxation, in many ways their tax systems are very similar. For example, all allow taxpayers to report their own income, backed up by official reporting slips and receipts.
A joint income tax collection system means that Canadians outside of Quebec complete a single tax return form. The Canada Revenue Agency (CRA) collects income taxes for the federal government, the provinces other than Quebec and the territories. The Agence du Revenu du Québec (ARQ) collects Quebec income tax from Quebec residents.
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