The Overseas Employment Tax Credit is available to individuals who are resident or deemed resident in Canada for any part of a taxation year.
An individual described above who has
- earned qualifying income in a taxation year throughout a qualifying period while employed by a specified employer; and
- performed all or substantially all the duties of employment outside Canada with respect to a qualifying activity of the employer
may, under section 122.3, deduct Overseas Employment Tax Credit from the tax otherwise payable for the year.
To claim this credit use Form T626 Overseas Employment Tax Credit. Your employer must complete and sign part 1 of the form. You must complete part 2 and file this form with your income tax return.