Canadian tax guide for Ukrainian newcomers, including CUAET arrivals (2026)

Last reviewed: 2026-10-30 | Milinchuk CPA Professional Corporation

Many Ukrainians came to Canada under the Canada-Ukraine authorization for emergency travel (CUAET) or other programs. Whatever your immigration status, the Canadian tax rules depend on whether you are a resident of Canada for tax purposes. This guide covers your first Canadian return, why filing matters for benefits, income you still earn in Ukraine, foreign property reporting, and the Canada-Ukraine tax treaty, with links to the CRA and the treaty text. It is general information, not advice for your situation.

1. Tax residency is not the same as immigration status

• For income tax, the CRA looks at your residential ties to Canada, such as a home, a spouse or common-law partner, or dependants here. For most newcomers, residency starts on the day they arrive and set up those ties. (CRA: Newcomers to Canada; CRA Income Tax Folio S5-F1-C1)
• A temporary permit does not, by itself, decide your tax residency. If you do not set up ties but stay in Canada for 183 days or more in a calendar year, you may be deemed a resident for the whole year under ITA s. 250(1)(a).
• If Ukraine also treats you as a resident, Article 4(2) of the Canada-Ukraine tax treaty decides which country treats you as resident, looking first at where you have a permanent home and then at where your personal and economic ties are closer.
• If your situation is unclear, you can ask the CRA for an opinion with Form NR74, Determination of Residency Status (Entering Canada). (CRA: Form NR74)

2. Your first Canadian tax return

• Report your world income from the date you became a resident. Foreign income you earned before that date is not taxed in Canada. Income from Canada before that date, such as pay for work done in Canada, may still be taxable and should be reported. (CRA: Newcomers to Canada; ITA ss. 2(3), 114, 115)
• The one-time federal transitional payment for CUAET arrivals (CUTAI) was non-taxable and is not reported as income on your return.
• Most property you owned when you arrived, such as shares or a foreign bank account, is treated as acquired at its fair market value on the day you became a resident (ITA s. 128.1(1)(b)-(c)). This does not apply to taxable Canadian property, such as Canadian real estate. Keep statements or valuations from that date. They set your cost if you sell later.
• Some credits, such as the basic personal amount, are prorated for the days you were resident in the year. Others, such as CPP and EI contributions, medical expenses, and donations, are based on amounts paid while you were resident (ITA s. 118.91).
• The return for the 2026 tax year is due April 30, 2027. If you or your spouse or common-law partner are self-employed, the filing date is June 15, 2027, but any balance owing is still due April 30.
• Collect your Canadian slips (T4, T4A, T5) and records of income from Ukraine or other countries after your arrival date.

3. Why filing matters for benefits

• The CRA uses your return to calculate benefits and credits, such as the Canada child benefit, the Canada Groceries and Essentials Benefit (formerly the GST/HST credit), and the Ontario Trillium Benefit. File every year, even if you had little or no income. For the Canada child benefit, you and your spouse or common-law partner both have to file.
• You do not have to wait for your first return. New residents can apply for the Canada Groceries and Essentials Benefit with Form RC151, and for the Canada child benefit with Form RC66. When you apply, the CRA asks for your world income for up to two years before you arrived. This is used to calculate benefits; it does not mean Canada taxes that income. (CRA: Newcomers to Canada)
• The Canada child benefit has a status condition. You or your spouse or common-law partner must be a Canadian citizen, a permanent resident, a protected person, or a temporary resident who has been resident in Canada throughout the previous 18 months (ITA s. 122.6). The CRA describes the last group as having a valid permit in the 19th month. (CRA: Canada child benefit, who can apply) Your immigration documents show your status. If you are unsure what status you hold or whether it is still valid, please ask a licensed RCIC or a lawyer; I can then handle the tax filing.

4. Income from Ukraine after you become a resident

As a resident of Canada, you report income from all countries on your Canadian return, converted to Canadian dollars using Bank of Canada exchange rates. How it is taxed depends on the type of income and the treaty.

• Salary from a Ukrainian employer for work you do in Canada: if you are a resident of Canada under the treaty (Article 4), pay for work physically done in Canada is taxable only in Canada (Article 15(1)). Ukrainian tax withheld on that pay anyway is generally not eligible for a Canadian foreign tax credit, because the treaty does not give Ukraine the right to tax it (Article 23; ITA s. 126). Any refund usually has to come from Ukraine, so raise this with your employer early.
• Business income as a Ukrainian individual entrepreneur (FOP): report it on your Canadian return as business income, in Canadian dollars, with your expenses. If you run the business from Canada and have no permanent establishment or fixed base in Ukraine, the treaty generally gives Ukraine no right to tax it (Articles 7 and 14). Ukrainian single tax (fixed monthly amounts, or a percentage of revenue) and the unified social contribution are generally not income taxes for the Canadian foreign tax credit (ITA s. 126), so plan on paying full Canadian tax on this income. Ask before you file.
• Rent from an apartment in Ukraine: under Article 6, Ukraine can tax it, and Canada taxes it too. You can generally claim a foreign tax credit for Ukrainian income tax paid on that income (ITA s. 126, Forms T2209 and T2036).
• Interest and dividends from Ukraine: the treaty generally limits Ukrainian tax to 10% on interest (Article 11) and 15% on dividends paid to individuals (Article 10). The income is taxable in Canada, with a credit for the Ukrainian tax allowed under the treaty.
• Ukrainian pensions, including social security pensions: under Article 18(1), they are taxable only in Ukraine. On the Canadian return, they are generally included in income (line 11500) and then deducted as treaty-exempt income (line 25600, ITA s. 110(1)(f)(i)). Because the deduction comes after net income, the pension still counts in the net income used for benefits such as the Canada child benefit. No Canadian foreign tax credit is available for Ukrainian tax on it (ITA s. 126(7)).

5. Form T1135: foreign property reporting

• If the total cost of your specified foreign property was more than $100,000 at any time in the year, you file Form T1135 with your return. This includes Ukrainian bank accounts, shares, and real estate you rent out. (CRA: questions and answers about Form T1135)
• You do not file T1135 for the year you first became a resident. For property you owned when you arrived, the cost is its fair market value on the day you became a resident.
• Personal-use property is not reported. In the CRA's view, an apartment in Ukraine that you or a related person, such as your parents, use more than 50% of the time is personal-use property. An apartment rented out for profit is reported.
• The basic penalty for filing T1135 late is $25 a day, up to $2,500, and larger penalties can apply in some cases. If you also leave out income from foreign property, the CRA has 3 more years to reassess. Income from foreign property is taxable even if you do not have to file T1135.

6. The Canada-Ukraine tax treaty at a glance

• Canada and Ukraine signed their tax treaty on March 4, 1996, and it came into force on August 22, 1996. In Canada, it is part of the Income Tax Conventions Implementation Act, 1996.
• Main articles for individuals: Article 4 (residence and the tie-breaker rule), Article 6 (income from real property), Articles 10, 11, and 12 (limits on tax on dividends, interest, and royalties), Article 15 (employment income), Article 18 (pensions and annuities), and Article 23 (elimination of double taxation). Royalties are generally limited to 10% (Article 12), and royalties for computer software are taxable only in the country where the recipient lives.
• The treaty decides which country can tax and how double tax is relieved. It does not remove your obligation to file a Canadian return or report foreign property.

Checklist

• Date you became a resident of Canada for tax purposes noted
• Values of foreign property on that date recorded
• RC151 and RC66 sent, if you have not applied for benefits yet
• First Canadian return filed by April 30 (June 15 if self-employed)
• Ukrainian income listed by type, with any Ukrainian tax paid
• Form T1135 reviewed from your second year as a resident
• Immigration status questions referred to a licensed RCIC or lawyer

Next step

I prepare first Canadian returns for newcomers and review income and property in Ukraine. See my newcomers service page and the first-year checklist for newcomers. I work with clients in English or Russian, and this website is also available in Ukrainian.

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This guide is general tax information based on CRA and Department of Justice pages available in October 2026. It is not immigration advice. I am not a licensed immigration consultant; for questions about CUAET, permits, or status, speak with a licensed RCIC or an immigration lawyer. Rules and amounts change; check the linked pages or ask me before you act.