OETC - OVERSEAS EMPLOYMENT TAX CREDIT ITA 122.3; IT-497 To...

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OVERSEAS EMPLOYMENT TAX CREDIT – ITA 122.3; IT-497 To strengthen Canadian companies’ competitive position to attain foreign contracts the government implemented the overseas employment tax credit (OETC). The OETC provides up to $80,000 tax reduction for employment income earned in a full year outside of Canada. To calculate the tax credit, the taxpayer takes the lesser of (a) $80,000 or (b) Qualifying Income x 80% (pro-rated on a daily basis for the qualifying employment). The value calculated is divided by total income for the year. Finally, multiply by the amount of taxes otherwise payable. The OETC is available to residents or deemed residents of Canada, for any part of a taxation year who have “qualified income”, for a “qualified period” while employed outside of Canada by a “specified employer” while performing “qualified activities”. Qualifying Income The qualifying income relating to OETC is employment income earned by the taxpayer through a qualifying period during employment by a specified employer
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This note was uploaded on 02/19/2012 for the course ACCT 4454 taught by Professor Barry during the Spring '12 term at Saint Mary's University Texas.

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OETC - OVERSEAS EMPLOYMENT TAX CREDIT ITA 122.3; IT-497 To...

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