Overseas Tax Credit
Moderators: sky's the limit, sepia, Sulako, North Shore
Overseas Tax Credit
Can any one shed any lite on the overseas tax credit, how does this work?
Tax Credit
Go to the revenue canada website, go to search and type in overseas tax credit. Once it comes up and you open the file it will give you another file that gives you all the details on how it works. I will try and find that file number and post it for you.
Tax Credit
Here it is. The bulletin that describes it is, IT-497R4, and the form you have to fill out with your employer is T626. Hope this works.
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rotorhead350
- Rank 4
- Posts: 248
- Joined: Thu Apr 07, 2005 10:46 am
- Location: Mozambique/Thailand
hey 2024, just be aware of the requirments for the overseas tax credit. As you likely know the form has to be signed by your employer, and the work you have done has to be in exploration/developement. Keep in mind that you may not need this form, really only if you are being paid by a canadian company, and it you are canadian of course. One other way to do it, if you don't have a house, you can cancell you bank accounts and still get paid by a canadian employer and not pay any tax, but you have to declare yourself a nonresident, unlike the states you can do that and still hold citizenship. Good luck, ya those mi26's a cool, i worked at and airfield in africa where the un had one, they are huge. Good luck
You have to be an employee (not a contractor). You have to work overseas for 6 months plus at least one day (or more). The company you work for will issue you the letter stating that fact. Once you file your return you are supposed to get back about 85% of the taxes that were taken from your salary. This info I got from two friends (one is with CHC and the other is in Africa with the UN). Also if you do work in Canada on your time off you lose the tax credit privilege. The time you work overseas does not have to be a one shot deal, it can be spread over the year.
I've been told that you could also form your own company, become an employee of your own company and have your company "contract" your services out. That costs money.
Divesting of all Canadian ownership also works.
I've been told that you could also form your own company, become an employee of your own company and have your company "contract" your services out. That costs money.
Divesting of all Canadian ownership also works.
your actually allowed to work 10%of your total work time in canada and still qualify, also be aware that you can over lap years, for example, if you work three months at the end of one year, and into the next year, if you meet your six month requirement, with the 10%, you qualify for for that time, so you would have to do a re-assesment for the previous year as you would not have qualified at the time.
