Note: The overseas tax credit was reduced for 2012 and eliminated in 2016. There is no claim for 2016. The T626 is no longer available for 2016. For more information, visit the Budget 2012 - Overseas employment tax credit (OETC) - phase out page on the CRA website.
Get an amount to flow to line to line 2 on T626 form
The overseas income should be entered on the T4 slip, Box 72, and it will flow through line 2 of T626. Line 17 will be automatically calculated.
Form T626 is used for Overseas Employment Tax Credit calculation. ProFile will do an perform the calculation as long as conditions are met, and the oversea income is properly entered. The taxpayer will be able to claim the overseas employment tax credit (OETC) if both of the following apply for 2014:
- Taxpayer was a resident or Deemed resident of Canada at any time in the year.
- Taxpayer has employment income from certain kinds of work done in another country.
Additionally, to qualify for the OETC, the taxpayer must have performed all or substantially all (at least 90%) of the employment duties outside Canada for a period of more than six consecutive months (all or part of which were during the tax year for which the credit is being claimed) with a specified employer.
The duties must also have been in connection with a contract (or for the purpose of obtaining a contract) under which the employer carried on a business outside Canada conducting one of the following activities:
- The exploration for or exploitation of petroleum, natural gas, minerals, or other similar resources;
- Any construction, installation, agricultural, or engineering activity; or
- Any activity performed under contract with the United Nations (UN).