Shamuro Did this employee work for you in connection with a contract described in question D below throughout a. Throughout the qualifying period, were you an employer in one of the following categories? Entering Schedule 1 Line and T Part 1 of this form must be completed by your employer, and you must meet all of the conditions of the form to qualify for the credit. Report all income in the Income section of the Interview.
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Email The overseas employment tax credit is a tax credit for Canadian workers who have completed at least six consecutive months of overseas work in industries including gas, oil, construction and engineering.
Residents vs. For tax purposes, the number of days you spent in Canada along with your residential ties determine your residency status. If you spent less than days in Canada and you have no residential ties to the country, you are considered to be a non-resident and cannot claim the OETC. Residential ties include property, family members, health insurance or other commitments. If you have residential ties, you may be considered a resident, regardless of how long you spent overseas.
For example, even if you spent days working abroad last year, you are considered a Canadian resident if you maintain your ties to Canada. However, if you are living and working in a country that has a tax treaty with Canada, you are considered a deemed non-resident, regardless of your Canadian ties.
To qualify, you need to work in the oil and gas industry or in a related field of resource exploration. Wages from construction, agriculture and engineering jobs also qualify for this credit. If you have drawn wages while trying to obtain a contract in one of these industries or while carrying out the terms of a United Nations contract, you may also claim the OETC.
During that time, you can perform some of your duties in Canada, but the majority of your work 90 percent must be performed outside of Canada. For example, if you work in the oil and gas industry and your job takes you back and forth between a foreign country and Canada, you cannot claim this credit if you spend half of your time in Canada. However, if you only spend one out of every 20 work days in Canada, you can claim this credit, as you have spent 95 percent of your time working overseas.
Have your employer fill out part one of this form, and fill out part two on your own. If your employment contract was in writing before March 29, , you may be exempt from this phase out.
T626: Overseas Employment Tax Credit
T626 Tax Form: Overseas Employment Tax Credit