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.
B.Fioravanti
19(1) (613) 957-2072
HBW 8413-1
HBW 4125-J1
April 24, 1990
Dear 19(1)
We are writing in reply to your letter of March 13 requesting information with respect to your income tax status as it relates to employment income earned outside the JET Programme.
As a continuing resident of Canada, any employment income earned outside the JET Programme is subject to income tax in Canada pursuant to Article 15 of the Canada-Japan Income Tax Convention. The Government of Japan also has the right to tax employment income earned in Japan. In order to avoid double taxation, Canada will provide a foreign tax credit equal to the lesser of the tax paid to Japan and the portion of the Canadian tax paid on that income.
Participants in the JET Programme are governed by Article 18 of the Convention and are exempt from tax in Canada based on the unique nature of the Programme. This stems from the fact that the Programme is conducted under the co-sponsorship of the Ministry of Home Affairs, the local government of Japan, and those applicants invited to Japan as participants who "are expected to assume significant responsibilities as representatives of their respective countries".
The initiative of and the employment by the Japanese government together with the additional responsibilities of the participants bring the participants into Article 18 of the Convention.
We trust that this explanation will be of assistance.
Yours sincerely, Christine Savage Acting Director Provincial and International Relations Division
c.c.: Mr. Ken Major Foreign Section
BF/jb no1-9 File copy Sequence file
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