OETC - Overseas Employment Tax Credit

molloy · Post by **molloy** » Sat Apr 09, 2011 9:37 am

I've been working in India and Brazil for the past 4 years getting paid through Houston in USD. Up until recently I believed I was getting paid by the USA division of the company. But, on my pay checks it states that the Canadian division of the company has been paying me. It also states this on the taxes filed and salary slips. Even though I'm paid in USD can I apply for the OETC?

nelsona · Post by **nelsona** » Sat Apr 09, 2011 2:14 pm

Yes, the currency you were paid in does not matter.

molloy · Post by **molloy** » Sat Apr 09, 2011 7:04 pm

Thanks for the reply! That is great, now I will have to get someone to fill out the OETC form from the Canadian division. It could be difficult as I didn't believe I had any ties to Canada. All I know is the company on my indian tax return main base is in Alberta. I appreciate the help!

molloy · Post by **molloy** » Sun Apr 10, 2011 9:59 am

I am trying to go about getting the OETC the correct way. I have the T626 document, is it alright if the Office in India fills out Part 1 in the T626 or does it have to be the Canadian office? Also, is there anything else to getting approved for OETC once this is filled out? Do they need to apply to the government using other means? Thanks

JGCA · Post by **JGCA** » Sun Apr 10, 2011 11:50 am

To qualify for teh OETC you must meet some tests basically you have to be a resident or deemed resident of Canada and the emplyment you carried out for your employer must meet certainrequirements which your employer has to certify, it would not matter which office branch fills in the form as long as it is certified to meet the specific criteria and teh person ia authorized to sign off on behalf of teh company.

bbell26 · Post by **bbell26** » Wed Jan 04, 2012 10:02 am

hello I work for a canadian company. I have been working all over the world. This year i was out of the country for 98 days and on Medical leave for 181 days. I also get paid 2 days pay for 1 day at work since i am pay while i am home. So I was wondering if i will still qualify for the overseas tax credit.

nelsona · Post by **nelsona** » Wed Jan 04, 2012 10:42 am

No. you were not working for a six month period outside Canada.

bbell26 · Post by **bbell26** » Wed Jan 04, 2012 10:47 am

I have received the tax credit many times before because with only 85 days out of the country because of getting paid 2 days pay for every one day out of the country.

nelsona · Post by **nelsona** » Wed Jan 04, 2012 1:41 pm

For EOTC you need to be performing work outside the country for a continuous six month period. Now within that period you can be back in canada for limited contact with your employer, without breaking the continuity.

It is not the number of days that you work, but the period of time you are continuously out of country.

So, did you leave canada for 6 months continuously or not?

bbell26 · Post by **bbell26** » Wed Jan 04, 2012 1:47 pm

well i work on a 5 week on and 5 week off rotation so that means i am home in canada every 5 weeks. and i have always received the tax break.

nelsona · Post by **nelsona** » Wed Jan 04, 2012 2:43 pm

As long as during the 5 weeks off, you are not working, then your continuity is not broken.

However, this year you were on sick leave. This may impact how your time is counted.

But tellme, If it has always been granted by theemployer and CRA, wh yare you asking here?