,canada ,rev5ue ,ag5cy #a ,m ,ways 6,s]ve ,y6 ,9come ,tax ,te*nical ,news ,numb] #ca;,r#b ,may #af1 #bjjf ,? ,te*nical ,news c.els & replaces ;,,tn-#ca;,r1 dat$ ,novemb] #bd1 #bjjd1 due 6! a4i;n (a fur!r excep;n 6! f/ >ticle 5titl$ ,social ,secur;y ,taxes &! ,=eign ,tax ,cr$it4 ,9 ,? ,issue ,social ,secur;y ,taxes &! ,=eign ,tax ,cr$it ,s+le-,purpose ,corpor,ns ,applic,n ( ,p>agraph #ha7#a7h7 ,! ,9come ,tax ,te*nical ,news is produc$ 0! ,legislative ,policy & #a  ,te*nical news a#a ,regulatory ,a6airs ,bran*4 ,x is provid$ = 9=m,n purposes only & does n replace ! law4 ,if y h any -;ts or su7es;ns ab ! matt]s 4cuss$ 9 ? public,n1 pl1se s5d !m to3 ,9come ,tax ,rul+s ,directorate ,legislative ,policy & ,regulatory ,a6airs ,bran* ,canada ,rev5ue ,ag5cy ,ottawa ,,on ,k#a;,a #j;,l#e ,! ,9come ,tax ,te*nical ,news c 2 f.d on ! ,canada ,rev5ue ,ag5cy ,9t]net site at _+www.cra.gc.ca_:4 ,social ,secur;y ,taxes &! ,=eign ,tax ,cr$it ,sec;n #abf (! ,9come ,tax ,act 7! 8,act07 provides =a =eign tax cr$it = taxes pd 6=eign jurisdic;ns4 ,! ,canada ,rev5ue ,ag5cy 7,,cra7 /at$ 9 p>agraph #e ( ,,it-#abb;,r#b1 t ,,us social #b  ,social secur;y taxes b#a secur;y taxes pd 0an employee >e 9come taxes t may qualify z 8non-busi;s-9come taxes0 "u subsec;n #abf7#g7 (! ,act = purposes (! =eign tax cr$it "u p>agraph #abf7#a77a74 ,! ,,cra has al 3firm$ t ,g]man & ,fr5* social secur;y 3tribu;ns qualify z 8non-busi;s-9come taxes04 ,we h rec5tly review$ ! tr1t;t ( social secur;y taxes z 9come or pr(its taxes =! purposes (! =eign tax cr$it & we 3clud$ t ! posi;n 9 ,,it-#abb;,r#b is n supporta# 9 law1 2c ! social secur;y taxes review$ d n qualify z taxes4 ,3sequ5tly1 ! ,,cra is revis+ xs posi;n on ? po9t4 ,z a rule1 social secur;y taxes w no l;g] 2 a3ept$ z non-busi;s 9come taxes =! purposes (! =eign tax cr$it4 ,! te*nical 9t]pret,ns reg>d+ ! tax tr1t;t ( social secur;y 3tribu;ns 9 ,fr.e & ,g]_m z =eign tax cr$its >e ?us obsolete & unrelia#4 ,z provid$ 9 ! ,canada-,u4,s tax 3v5;n h["e1 ,canada has specific,y agre$ 6give a =eign tax cr$it = pay;ts "u ! #c  ,social secur;y taxes c#a ,f$]al ,9sur.e ,3tribu;ns ,act1 m -monly "kn z ,,fica taxes4 ,9 a3ord.e ) \r tax tr1ty )! ,u4,s41 ! ,,cra w 3t9ue 6all[ a =eign tax cr$it = ,,fica taxes4 ,! posi;n 9 ,9t]pret,n ,bullet9 ,,it-#abb;,r#b t ,u4,s4 social secur;y taxes collect$ "u ! ,u4,s4 ,f$]al ,9sur.e ,3tribu;ns ,act >e 9come or pr(its taxes 0 bas$ on ! ,seley case1 a #aifb deci.n (! ,tax ,app1l ,bo>d 7#fb ,,dtc #efe1 #fb ,,tab #bdc74 ,! ,bo>d held t ! social secur;y 3tribu;ns pd 0a ,canadian taxpay] 6! ,u4,s4 qualifi$ z an 9come or pr(its tax =! purposes (! =eign tax cr$it4 ,! !n ,de"p;t ( ,n,nal ,rev5ue a3ept$ t deci.n & ? 0 reflect$ 9 ,,it-#abb;,r#b4 ,h["e1 \r reli.e on ! ,seley case 0 reconsid]$ 9 lie n re,y taxes at all1 )9 ! judici,y a3ept$ m1n+ ( t t]m4 ,we h rec5tly 3sid]$ a situ,n ": ! 3tribu;ns made 0an employee 6a =eign social secur;y sy/em wd n make ! employee eligi# 6any b5efits ": ! employ;t 9 ! =eign c.try 0 tempor>y &=a %ort p]iod ( "t4 #e  ,social secur;y taxes a#b ,! ,,cra w a3ept t a 3tribu;n 0an employee resid5t 9 ,canada 6a =eign public p5.n plan 2 3sid]$ z a non-busi;s 9come tax =! purpose ( sec;n #abf (! ,9come ,tax ,act ": ! foll[+ two 3di;ns apply3 --! employee is -pell$ 6make ! 3tribu;n pursuant 6! legisl,n (! =eign c.try2 & --x is r1sona# 63clude t ! employee w n 2 eligi# = any f9ancial b5efit f his/h] 3tribu;n 3sid]+ t ! employ;t 9 ! =eign c.try 0 tempor>y &=a %ort p]iod ( "t4 99#a ,! *anges >e e6ective =! #bjjd & subsequ5t tax,n ye>s & ,,it-#abb;,r#b has be5 c.ell$ & annotat$ z s* 9 ,"p #e (! #bjjd ,9dex 6,9come ,tax ,9t]pret,n ,bullet9s & ,te*nical ,news issu$ on ,april #bg1 #bjje4 #f  ,s+le-,purpose ,corpor,ns b#b ,! ,canada ,rev5ue ,ag5cy has rec5tly -plet$ ! review ( xs adm9i/rative posi;n n 6assess a taxa# b5efit "u subsec;n #ae7#a7 (! ,9come ,tax ,act 7! 8,act07 ": ! taxpay] is ! %>ehold] (a s+le- purpose corpor,n t has be5 e/abli%$ 6hold ,u4,s4-bas$ r1l prop]ty4 ,? posi;n 0 f/ describ$ 9 response 6,"q #bj at ! ,rev5ue ,canada ,r.d ,ta# (! #aihj ,canadian ,tax ,f.d,n ,3f];e & has be5 subject 6a4i;nal cl>ific,n on s"eal o3a.ns4 ,! r,nale = ? posi;n >ose \ (! fact t :5 ,canada aboli%$ e/ate taxes 9 #aigb1 x t]m9at$ xs e/ate tax 3v5;n )! ,u4,s4 s* t ,canadian resid5ts :o [n$ ,u4,s4-bas$ prop]ty 7 significantly limit$ 9 ! relief !y cd obta9 f ,u4,s4 e/ate taxes exigi# on _! ,u4,s4 hold+s4 ,? lack ( relief 0 n 3sid]$ appropriate giv5 t ,canada did n levy an e/ate tax on ,u4,s4 resid5ts4 ,^! ,u4,s4 e/ate tax pro#ms t 3front$ ,canadian resid5ts [n+ p]sonal-use #g  ,s+le-purpose corpor,ns c#b r1l prop]ty situat$ 9 ! ,unit$ ,/ates 7 g5],y resolv$ 0! am5d;ts 6! ,canada- ,unit$ ,/ates ,9come ,tax ,3v5;n 7! 8,3v5;n07 t came 96e6ect on ,novemb] #i1 #aiie4 ,! provi.ns relat+ 6,u4,s4 e/ate taxes c 2 f.d 9 ,>ticle ,,xxix ;,b (! ,3v5;n4 ,s9ce ! r,nale =! adm9i/rative posi;n is no l;g] valid1 x is 9appropriate 63t9ue ? adm9i/rative policy4 ,3sequ5tly1 subject 6! transi;nal relief describ$ 2l1 99#b e6ective af ,decemb] #ca1 #bjjd 99#b1 ? adm9i/rative policy w no l;g] apply =3 --any new 99#b prop]ty acquir$ 0a s+le-purpose corpor,n1 or --a p]son :o acquires %>es (a s+le- purpose corpor,n un.s s* %>e acquisi;n is ! result (! d1? (! 9dividual's sp\se or -mon-law "pn]4 ,! adm9i/rative policy w 3t9ue 6apply 6^? >range;ts t >e curr5tly 9 place until ! e>li] (3 #h  ,s+le-purpose corpor,ns d#b --! 4posi;n (! "picul> ,u4,s4-bas$ r1l e/ate 0! s+le-purpose corpor,n2 or --a 4posi;n (! %>es (! s+le-purpose corpor,n1 o!r ?an a transf] ( s* %>es 6! %>ehold]'s sp\se or -mon- law "pn] z a result (! d1? (! %>ehold]4 ,9 a4i;n1 ? adm9i/rative policy w 3t9ue 6apply 6any r5ov,n or a4i;n 6a dwell+ : 0 acquir$ 2f ,janu>y #a1 #bjje1 & 6a dwell+ : 0 "u 3/ruc;n on ,decemb] #ca1 #bjjd4 ,= grt] c]ta9ty1 a dwell+ w 2 3sid]$ 6be "u 3/ruc;n ": ! f.d,n or o!r support has be5 put 9 place4 ,transi;nal relief w n 2 provid$ ": vacant l& has be5 acquir$ b ! f.d,n or o!r support has n be5 put 9 place4 ,simil>ly1 transi;nal relief w n 2 provid$ ": l& ) an exi/+ build+ has be5 acquir$ 2f ,janu>y #a1 #bjje b x is ! 9t5;n (! taxpay] 6demoli% ! exi/+ build+ & 3/ruct a new dwell+ on ! l&4 99#b #i  ,applic,n ( ,p>agraph #c #ha7#a77h7 ,! purpose ( ? >ticle is 6describe h[ ! 9come tax exemp;n applies 6fo/] c>e provid]s4 ,sec;n #ha (! ,9come ,tax ,act li/s v>i\s am.ts t >e n 9clud$ 9 -put+ a taxpay]'s 9come4 ,9 g5]al1 p>agraph #ha7#a77h7 exempts f 9come social assi/.e pay;ts 6an 9dividual c>egiv] 7! 8,c>egiv]07 =! b5efit (a fo/] p]son 7! 8,c>$-= 9dividual07 "u ! ,c>egiv]'s c>e4 ,! ,c>$-= 9dividual c 2 ei a * or an adult4 ,! 9come tax exemp;n applies 6an am.t rcvd 0! ,c>egiv] :5 all (! foll[+ 3di;ns apply3 #a4 ,! pay;t is a social assi/.e pay;t ord9>ily made on ! basis (a m1ns1 ne$s1 or 9come te/4 #b4 ,! pay;t is made "u a program provid$ = 0a f$]al1 prov9cial or t]ritorial law4 #aj  ,p>agraph #ha7#a77h7 a#c #c4 ,! pay;t is rcvd directly or 9directly 0! ,c>egiv] =! b5efit (! ,c>$-= 9dividual4 #d4 ,! ,c>$-= 9dividual is n ! ,c>egiv]'s sp\se or -mon-law "pn] or relat$ 6! ,c>egiv] or ! ,c>egiv]'s sp\se or -mon-law "pn]4 #e4 ,no family all[.e "u ! ,family ,all[.es ,act or any simil> all[.e provid$ = 0prov9cial or t]ritorial law is paya# 9 respect (! ,c>$-= 9dividual =! p]iod = : ! social assi/.e pay;t is made4 #f4 ,! ,c>$-= 9dividual resides 9 ! ,c>egiv]'s pr9cipal place ( resid;e1 or ! ,c>egiv]'s pr9cipal place ( resid;e is ma9ta9$ = use z ! ,c>$-= 9dividual's resid;e1 dur+ ! p]iod = : ! pay;t is made4 ,social ,assi/.e ,g5],y1 social assi/.e m1ns aid made 0a gov]n;t or gov]n;t ag5cy on ! #aa  ,p>agraph #ha7#a77h7 b#c basis ( ne$4 ,x does n matt] if ! pay;ts >e made directly 0a gov]n;t or gov]n;t ag5cy or if !y >e rcvd 9directly "? ano!r organiz,n1 2 x a n-=-pr(it or =-pr(it 5t;y4 ,! social assi/.e pay;ts may al 2 made 6! ,c>$-= 9dividual1 :o !n pays ! ,c>egiv]4 ,m1ns1 ,ne$s1 or ,9come ,te/ ,9 det]m9+ :e!r ! fo/] c>e pay;ts >e made on ! basis (a m1ns1 ne$s1 or 9come te/1 we 3sid] ea* "o 6be a f9ancial te/3 --,an 89come0 te/ is a te/ bas$ solely on ! 9come (! applicant4 --,a 8m1ns0 te/1 : is simil> 6an 9come te/1 al takes 96a3.t ! assets (! applicant4 --,a 8ne$s0 te/ takes 96a3.t ! 9come1 assets & f9ancial ne$s (! applicant4 ,an example (a program ) an 9come te/ is "o ": ! b5efits paya# >e reduc$ 0a #ab  ,p>agraph #ha7#a77h7 c#c p]c5tage ( 9come (! ,c>$-= 9dividual abv a set am.t4 ,types ( ,eligi# ,pay;ts ,z /at$ abv1 ! pay;ts 6a ,c>egiv] c 2 made directly 0a gov]n;t or gov]n;t ag5cy4 ,alt]natively1 ! gov]n;t or gov]n;t ag5cy c provide fund+ 6ano!r organiz,n 7s* z a *n's aid society1 *>;y or a =-pr(it corpor,n71 : 3tracts )! ,c>egiv]4 ,! ,c>egiv] c 2 ei self- employ$ or an employee (! pay+ organiz,n4 ,! social assi/.e pay;ts may al 2 made 6! ,c>$-= 9dividual1 :o !n pays ! ,c>egiv]4 ,types ( ,busi;s or ,employ;t ,rel,n%ips ,p>agraph #ha7#a77h7 may apply ": --,! ,c>egiv] is an employee (! pay+ organiz,n4 ,9 ? situ,n1 ! pay;ts >e n subject 6,canada ,p5.n #ac  ,p>agraph #ha7#a77h7 d#c ,plan 7,,cpp7 3tribu;ns4 ,h["e1 !y >e 3sid]$ 9sura# e>n+s = ,employ;t ,9sur.e 7;,,ei7 purposes4 ,acly1 ! employ] is responsi# = deduct+ & remitt+ ;,,ei premiums4 ,! employ] m/ al remit ! employ] premiums on ^! pay;ts4 --,! ,c>egiv] is self-employ$4 ,! pay;ts rcvd 0! ,c>egiv] >e n subject 6,,cpp or ;,,ei4 --,! ,c>egiv] is an employee (a corpor,n t is [n$ 9 :ole or 9 "p 0! ,c>egiv] or a p]son relat$ 6! ,c>egiv]4 ,9 ? situ,n1 ! pay;ts >e n subject 6,,cpp 3tribu;ns2 h["e1 !y may 2 3sid]$ 9sura# e>n+s = ;,,ei purposes4 ,= m 9=m,n1 see ! public,n1 ,employ]s' ,guide-- ,payroll ,deduc;ns 7,,basic ,,9=m,n7 7,t#djja71 : is availa# on \r ,web site at _+www.cra.gc.ca_:4 #ad  ,r5t #d ,": a ,c>egiv] rcvs fo/] c>e pay;ts t >e exempt 9come "u p>agraph #ha7#a77h71 ! exemp;n may al apply 6r5t pd 6! ,c>egiv] 0! ,c>$-= 9dividual4 ,? only applies ": ! pay;t = fo/] c>e >e exempt$ 0p>agraph #ha7#a77h7 & ": ! r5t -es f social assi/.e pay;ts rcvd 0! ,c>$-= 9dividual4 ,": ? is n ! case1 r5t rcvd 0! ,c>egiv] wd n 2 social assi/.e exempt$ 0p>agraph #ha7#a77h71 b wd simply 2 r5tal 9come rcvd 9 ! capac;y (a l&"l4 ,c>egiv]'s ,pr9cipal ,place ( ,resid;e ,! ,c>$-= 9dividual m/ reside 9 ! ,c>egiv]'s 8pr9cipal place ( resid;e01 or ! ,c>egiv]'s 8pr9cipal place ( resid;e0 m/ 2 ma9ta9$ = use z ! ,c>$-= 9dividual's resid;e1 dur+ ! p]iod = : ! pay;t is made4 #ae  ,p>agraph #ha7#a77h7 a#d ,an 9dividual's 8pr9cipal place ( resid;e0 is ! place ": ! 9dividual regul>ly1 norm,y or cu/om>ily lives4 ,9 \r view1 ! place ": ! 9dividual norm,y sleeps is a significant factor 9 mak+ ? det]m9,n4 ,o!r significant factors 9clude ! loc,n (! 9dividual's 2l;g+s1 ": ! 9dividual rcvs 8 or h] mail1 & ": ! 9dividual's imm family1 9clud+ ! 9dividual's sp\se or -mon-law "pn] & *n1 reside4 ,! 8pr9cipal place ( resid;e0 require;t is n met 9 situ,ns ": ! ,c>egiv] &! c>$-= 9dividual d n %>e -mon liv+ >1s 9 ! resid;e4 ,? 9cludes ! kit*51 liv+ room1 d9+ room1 family room & 5tr.es 6! home4 ,= example1 ": ! ,c>egiv] lives 9 "o unit (a duplex &! ,c>$-= 9dividual lives 9 ! o!r unit1 ! pr9cipal place ( resid;e require;t wd n met4 #af  ,a4i;nal ,assi/.e b#d ,= assi/.e 9 det]m9+ if ! exemp;n "u p>agraph #ha7#a77h7 applies 6specific pay;ts1 3tact ! ,cli5t ,s]vices ,divi.n ( yr local ,tax ,s]vices ,(fice4 99#a ,a4i;n made on ,may #af1 #bjjf4 99#b ,correc;ns & a4i;ns made on ,novemb] #ae1 #bjjd4 #ag