Canadian taxes when working overseas
I work in Equatorial Guinea 28 x28 days on and off ,returning back to BC. The company I work for pays tax in EG on my behalf, what taxes should i be paying here in canada
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david ingram replies:
The Guinea income is just as taxable in Canada as if you were working in Moose Jaw or Truro.
You have to add the tax they are paying for you to what they pay you specifically and report the gross to Canada on lines 104 and 433 and the appropriate lines on forms T2036 and T2209 of your T1 Canadian Income Tax Return.
You will then claim the foreign taxes you paid to EG as a Foreign tax credit on line 431 of schedule 1 and the appropriate line on T2209 of your T1
However, if you are working for a Canadian Company, you may be able to fill out Form T626 and claim an Overseas Employment Tax Credit First.
___________________________________________
david ingram replies:
The Guinea income is just as taxable in Canada as if you were working in Moose Jaw or Truro.
You have to add the tax they are paying for you to what they pay you specifically and report the gross to Canada on lines 104 and 433 and the appropriate lines on forms T2036 and T2209 of your T1 Canadian Income Tax Return.
You will then claim the foreign taxes you paid to EG as a Foreign tax credit on line 431 of schedule 1 and the appropriate line on T2209 of your T1
However, if you are working for a Canadian Company, you may be able to fill out Form T626 and claim an Overseas Employment Tax Credit First.
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