Government employees outside Canada
This page provides tax information to federal and provincial government employees who are posted abroad, as well as to members of their families.
Residency status
Government employees posted outside Canada are usually factual residents of Canada or deemed residents of Canada for income tax purposes.
Factual residents
You may be a factual resident of Canada for income tax purposes if you keep significant residential ties in Canada while living abroad.
The term factual resident means that although you are not in Canada, you are still considered a resident of Canada for income tax purposes.
If you are a factual resident and a resident of another country with which Canada has a tax treaty, you may be considered a deemed non-resident of Canada for income tax purposes.
Deemed residents
You may be a deemed resident of Canada for income tax purposes if you have severed residential ties in Canada and you were one of the following:
- a member of the Canadian Forces overseas school staff and you choose to file a return as a deemed resident of Canada. For more information on this choice, see Canadian Forces overseas school staff
- a federal or provincial government employee and you were either a resident of Canada just before being posted abroad or you received a representation allowance during the tax year
- a person working under a Global Affairs Canada assistance program if you were a resident of Canada at any time during the three-month period just before you began your duties abroad
- a member of the Canadian Forces at any time in the tax year
- a person who, under a tax treaty, agreement, or convention between Canada and another country, is exempt from tax in that other country on 90% or more of your income from all sources because of your relationship to a resident (including a deemed resident) of Canada
- a dependent child of 1 of the first 4 persons described earlier in this section and your net world income in 2023 was not more than the basic personal amount in Canadian dollars; $15,000 in 2023 ($14,398 in 2022, $13,808 in 2021, $13,229 in 2020, $12,069 in 2019, $11,809 in 2018, $11,635 in 2017, $11,474 in 2016, $11,327 in 2015, $11,138 in 2014, $11,038 in 2013, $10,822 in 2012, $10,527 in 2011)
What are residential ties?
Significant residential ties to Canada include:
- a home in Canada
- a spouse or common-law partner in Canada
- dependants in Canada
Secondary residential ties that may be relevant include:
- personal property in Canada, such as a car or furniture
- social ties in Canada, such as memberships in Canadian recreational or religious organaizations
- economic ties in Canada, such as Canadian bank accounts or credit cards
- a Canadian driver's licence
- a Canadian passport
- health insurance with a Canadian province or territory
For more information on residency status, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.
If you want an opinion about your residency status, complete and send Form NR73, Determination of Residency Status (leaving Canada) to the CRA.
Your tax obligations
As a factual resident, you:
- Must report your world income (income from all sources, both inside and outside Canada) for the entire tax year
- Can claim all deductions, federal, provincial or territorial non-refundable, and refundable tax credits, that apply to you
- Must pay federal tax
- Must pay provincial or territorial tax for the province or territory where you keep residential ties
- May be eligible for the GST/HST credit and the Canada child benefit (CCB)
For more information, see the Federal Income Tax and Benefit Guide.
As a deemed resident, you:
- Must report your world income (income from all sources, both inside and outside Canada) for the entire tax year
- Can claim all deductions and non-refundable tax credits that apply to you
- Are subject to federal tax and instead of paying provincial or territorial tax you'll pay a federal surtax
- Can claim all federal tax credits, but you cannot claim provincial or territorial tax credits
- Are eligible for the GST/HST credit
Which income tax package should you use?
If you are a factual resident, for the tax year you leave Canada and for all following years that you are outside Canada, use the Income Tax Package for the province or territory where you keep residential ties.
If you are a deemed resident, for the tax year you leave Canada and for all following years that you are outside Canada, use the Income Tax Package for Non-Residents and Deemed Residents of Canada.
Filing due date
Generally, you must file your income tax return on or before:
- April 30 of the year after the tax year
- June 15 of the year after the tax year, if you or your spouse or common-law partner carried on a business in Canada (other than a business whose expenditures are mainly in connection with a tax shelter)
Note
Any balance of tax owing must be paid on or before April 30 of the year after the tax year, regardless of the due date of the tax return.
Canada child benefit
If you are eligible to receive the Canada child benefit (CCB), you will continue to receive the CCB during your absence from Canada. However, to make sure your payments are not interrupted, you must file an income tax return for each year, so your CCB can be calculated.
Notes
If you have a spouse or common-law partner who is a factual or deemed resident, they must also file an income tax return each year.
If you have a spouse or common-law partner who is a non-resident, they will have to file Form CTB9, Income of Non-Resident Spouse or Common-Law Partner for the Canada child benefit each year.
If you have a child while outside Canada, you can apply for the CCB for this child by sending the Canada Revenue Agency a completed Form RC66, Canada Child Benefits Application (includes federal, provincial, and territorial programs).
Canadian Forces overseas school staff
If you severed your residential ties with Canada, you became a non-resident of Canada for income tax purposes on the date you left Canada. If this is your case:
- You should use the income tax package for the province or territory where you lived just before you left Canada
- See Leaving Canada (emigrants) for the special rules that apply to you
However, you can choose to file your income tax return as a deemed resident of Canada while you are serving abroad. If you choose to do so:
- For the tax year that you left Canada, use the income tax package for the province or territory where you lived just before you left Canada
- For the following years that you are outside Canada, you will use the Income Tax Package for Non-Residents and Deemed Residents of Canada
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