Closed
Last Update: May 29, 2026
Funding available
$ 100,000
Timeline
- Receipt of requests is now closed
Location
Canada
Overview
This program provides an overseas employment tax credit that can reduce Canadian income tax on qualifying foreign employment income. It applies to eligible employees working abroad in connection with specified activities, such as resource, construction, installation, agricultural, or engineering work.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Attract or retain talent
Eligible Funding
- Maximum amount : 100,000 $
- Up to 80% of project cost
Timeline
- Receipt of requests is now closed
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
- Mining, quarrying, and oil and gas extraction
- Construction
- Professional, scientific and technical services
Location
- Canada
Legal structures
- All legal structures
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Overseas employment tied to resource, construction, installation, agricultural, or engineering work.
- Work performed in connection with a qualifying foreign contract.
- Support services linked to qualifying overseas activities.
Documents Needed
- Form T626, Overseas Employment Tax Credit.
- Employee T1 tax return.
- Employer section of Form T626 completed.
- Supporting documents, such as the overseas employment contract.
Eligibility
Who is eligible?
- Canadian residents or deemed residents working abroad.
- Employees of specified employers.
- Workers engaged in qualifying foreign contracts or activities.
Who is not eligible
- Self-employed individuals.
- Employees paid under prescribed international development assistance programs.
- Certain employees of small service businesses where arm’s-length conditions are not met.
Ineligible Costs and Activities
- Self-employed income.
- Employment income from prescribed international development assistance programs.
- Income from certain small service businesses where the employee does not deal at arm's length with the employer or is a specified shareholder.
- Work for governments that do not carry on business outside Canada under a contract, such as most government employment income.
Eligible geographic areas
- Canada, for the taxpayer’s residency status.
- Outside Canada, for the qualifying employment duties.
Processing and Agreement
- The claim is filed with the employee’s T1 return using Form T626.
- The Canada Revenue Agency reviews whether the qualifying criteria are met.
- A request for reduced withholding may be submitted in advance with supporting documents.
- In some cases, CRA may grant a blanket waiver for employers with many qualifying employees.
Contacts
Frequently Asked Questions about the Overseas Employment Tax Credit Program
Here are answers to the most common questions about the Overseas Employment Tax Credit. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Overseas Employment Tax Credit?
This program provides an overseas employment tax credit that can reduce Canadian income tax on qualifying foreign employment income. It applies to eligible employees working abroad in connection with specified activities, such as resource, construction, installation, agricultural, or engineering work.
How much funding can be received?
Overseas Employment Tax Credit Funds up to 80% of admissible expenses, capped at $100,000 per project.
Who is eligible for the Overseas Employment Tax Credit program?
To be eligible for the Overseas Employment Tax Credit program, you must:
Canadian resident or deemed resident.
Specified employer and qualifying foreign work.
More than six consecutive months abroad.
What expenses are eligible under Overseas Employment Tax Credit?
Overseas employment tied to resource, construction, installation, agricultural, or engineering work.
Work performed in connection with a qualifying foreign contract.
Support services linked to qualifying overseas activities.
Who can I contact for more information about the Overseas Employment Tax Credit?
You can contact Government of Canada by email at none or by phone at 952-3741.
Where is the Overseas Employment Tax Credit available?
The Overseas Employment Tax Credit program is available across Canada.
Is the Overseas Employment Tax Credit a grant, loan, or tax credit?
Overseas Employment Tax Credit is a Tax Credits