Canadian Taxes

Canadian Income Tax

Generally, a person's income tax liability in Canada is determined by his or her residency status and sources of income. Residents of Canada, including factual residents and deemed residents are subject to Canadian income tax for their world income. Non-residents of Canada are generally subject to Canadian income tax only on their Canadian-source income.

Most participants in the Japanese Exchange and Teaching (JET) Program who are employed by the Japanese government, or one of its local authorities, are considered factual residents of Canada, depending on the facts of each case, and are required to report their world income, including income earned from the JET program, on a Canadian income tax return. However, the income they earn under the program is exempt from Canadian tax according to Article 18 of the Canada-Japan tax treaty. They report income they earn under the JET Program at line 104 and can claim corresponding deduction at line 256 of their federal income tax return. This exemption only applies to individuals employed in the JET program and does not apply to other sources of income.

To claim the exemption from Canadian tax, JET participants should attach a note to their income tax return indicating that the income was received from the JET program and include the Japanese statement of earnings (源泉徴収票 gensen chōshū hyō). This statement is similar to a Canadian T4 slip and shows income earned and income tax paid in Japan. It is not necessary to translate it into English or French.

If you are participating in the JET Program, use the income tax package for the Canadian province you lived in before coming to Japan. You can get the package and more information on residence status and your tax obligations from the Canada Revenue Agency.

Contact

For more information, contact the International Tax Service Office

International Tax Services Office
2204 Walkley Road
Ottawa ON K1Q 1A8

• Calls from anywhere in Canada and the United States 1-800-267-5177
• Calls from outside of Canada and the United States (613) 952-3741
• Collect calls accepted from outside Canada and the United States - Monday to Friday 8:15 a.m. to 5:00 p.m. (Eastern Time)
• Fax: (613) 941-2505

Notes

• This information is from handout received at 2007 Ottawa Pre-Departure Orientation