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Locally Engaged Employees of the Canadian Embassy and Consulates in the United States Remission Order



Registration 2018-04-18

Locally Engaged Employees of the Canadian Embassy and Consulates in the United States Remission Order

P.C. 2018-345 2018-03-26

Her Excellency the Governor General in Council, considering that it is in the public interest to do so, on the recommendation of the Minister of Finance, pursuant to subsection 23(2)Footnote a of the Financial Administration ActFootnote b, makes the annexed Locally Engaged Employees of the Canadian Embassy and Consulates in the United States Remission Order.


Marginal note:Definitions

  •  (1) The following definitions apply in this Order.


    Act means the Income Tax Act. (Loi)

    Canada-US Tax Convention

    Canada-US Tax Convention means the convention, as defined in the Canada-United States Tax Convention Act, 1984. (convention fiscale Canada–États-Unis)

    Embassy or Consulate

    Embassy or Consulate means the Embassy of Canada located in Washington, D.C., United States or any one or more of the offices of the Consulate General of Canada that are located in the United States. (ambassade et consulats)

    locally engaged employee

    locally engaged employee means an individual who during the taxation year

    • (a) is a non-resident of Canada;

    • (b) is a Canadian citizen; and

    • (c) is paid by the government of Canada for services rendered by the individual in the discharge of functions of a governmental nature at an Embassy or Consulate. (employé recruté sur place)

  • Marginal note:Application of meanings in Act

    (2) Unless the context otherwise requires, words and expressions used in this Order have the same meaning as in the Act.


Marginal note:Remission of Income Tax

 Subject to sections 3 and 4, remission is granted to each locally engaged employee with respect to tax payable under the Act for taxation years that begin after 2016 of the lesser of, in respect of remuneration that is taxable in Canada, and not in the United States, because of Article XIX of the Canada-US Tax Convention,

  • (a) the amount added to the tax payable under Part I of the Act by the employee under subsection 120(1) of the Act for the taxation year, and

  • (b) the amount, if any, of United States state-level income tax paid by the employee for the taxation year.


Marginal note:Amount not otherwise claimed

 Remission is granted only to the extent the amount remitted has not otherwise been rebated, remitted, credited or refunded to any person under the Act, the Financial Administration Act or any other Act of Parliament.

Marginal note:Timing and Documentation

 Remission is granted to a locally engaged employee in respect of a taxation year on the condition that

  • (a) the locally engaged employee applies for the remission in writing to the Minister on or before the day that is two years after their filing-due date for the taxation year; and

  • (b) the application is accompanied by the documentation required to determine both the eligibility for and the amount of the remission.

Coming into Force

Marginal note:Coming into force

 This Order comes into force on the day on which it is made.

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