Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
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Dear Sirs:
RE: German Social Security Contributions
This is in reply to your letter wherein you inquired whether contributions made by a Canadian resident, temporarily working in Germany, to a German government pension plan and a German government health plan qualify as an "income or profits tax" for the purposes of subsection 126(1) of the Canadian Income Tax Act (the "Act").
It is the Department's position that a mandatory contribution made under the German social security system, does constitute an "income or profits tax" for the purposes of section 126 of the Act. Therefore, provided the payments in respect of which your inquiry is made are mandatory, they will qualify. However, it is our understanding that depending upon the circumstances of a particular individual, German government health insurance may not be mandatory.
We trust the above is of assistance to you.
Yours truly,
for DirectorReorganizations and Foreign DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch
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© Her Majesty the Queen in Right of Canada, 1994
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© Sa Majesté la Reine du Chef du Canada, 1994
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