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.
HBW 9389-4
19(1) Jim Wilson
(613) 957-2063
June 20, 1990
Dear 19(1)
We are writing in reply to your letter dated June 6, 1990, concerning Canadian tax implications on employment income earned from the United Nations. The following comments may be of some assistance:
- 1. The Canadian tax system is based on residency and not citizenship. There are basically two types of residence: common-law residents and deemed residents. 2. Common-law residence is a question of fact and is determined by weighing various factors, the principal ones for individuals of which are the place where an individual's permanent home is and where that individual's economic, social and family ties are. In this regard, we have enclosed Interpretation Bulletin IT-221R2 for your reference which explains our department's position regarding determination of an individual's residence status.
- 3. Deemed residence is determined by statute and most commonly comes into effect when an individual stays in Canada for 183 days or more. The statute law overrides the common-law. Attached hereto is a photostatic copy of our deemed residency provisions (e.g. section 250 of the Income Tax Act). Paragraphs 250(1)(c) and (d) may sometimes apply to certain international organization employees or representatives.
- 4. Residents of Canada (whether common-law or deemed) are taxable on their world income. Canada would allow a tax credit pursuant to subsection 126(3) of the Income Tax Act to offset any internal tax levy (staff assessment) withheld by the United Nations to the extent of Canadian taxes attributable to those wages.
- Pursuant to section 2 of the Privileges and Immunities (International Organizations) Act and section 7 of the Privileges and Immunities Accession Order (United Nations), the exemption from Canadian tax on salaries and emoluments paid by the United Nations (as authorized by the “Convention on the Privileges and Immunities of the United Nations”) shall not extend to a Canadian citizen residing or ordinarily resident in Canada.
- 5. For a non-resident of Canada (possibly including Canadian citizens now living abroad), there are no Canadian tax implications on remunerations paid by the United Nations for services performed outside of Canada.
We trust you will find this to your satisfaction. If we can be of further assistance, please do not hesitate to contact us. There are no specific tax statutes applicable to United Nations income.
Yours sincerely,
Christine Savage
Acting Director
Provincial and International
Relations Division
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