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Canada Revenue Agency 
 
T626 E (11) (Front) 
 
OVERSEAS EMPLOYMENT TAX CREDIT 
 
Attach a completed copy of this form to your return to claim the overseas 
employment tax credit. For more information about this credit, see 
Interpretation Bulletin IT-497, Overseas Employment Tax Credit. 
 
Before you can complete Part 2 on the back, your employer has to complete Part 1 
of this form. 
 
Enter the year for which you are claiming the credit in the designated box. If 
your employment period covers more than one year, complete a separate form for 
each year. 
 
Claiming this tax credit may result in you having to pay alternative minimum 
tax. To determine if minimum tax applies to you, complete Form T691, Alternative 
Minimum Tax. 
 
Tax year ^
 
Part 1 - Specified employer certification 
 
Complete this part to certify the employment conditions of the employee 
identified below as they relate to the employment that qualifies for the 
overseas employment tax credit. 
 
Complete this part only if the employment income qualifies. If you are not 
dealing at arm's length with the employee, or you are in the business of 
providing services and you did not employ more than five full-time employees 
throughout the year, the income may not qualify. 
 
Employee's name ^
Social Insurance Number (enter 9-digit number) ^
 
A. Did this employee work for you in connection with a contract described in 
item C below throughout a period of more than six consecutive months, that began 
before the end of the year, and included any part of the year indicated above? 
Yes or No ^
 
If yes, please indicate the period of employment (referred to as the qualifying 
period): 
from: (Year/Month/Day) ^
to: (Year/Month/Day) ^
 
B. Throughout the qualifying period, did this employee perform services that 
were not under an international development assistance program of the Canadian 
International Development Agency? Yes or No ^
 
C. Throughout the qualifying period, did the employee perform all or 
substantially all (we consider this test to be met by 90%) of their employment 
duties outside Canada in connection with a contract (or for the purpose of 
obtaining a contract) under which you carried on a business outside Canada 
conducting one of the following activities? Yes or No ^
 
If yes, tick (enter an X) the applicable box below: 
- the exploration for or exploitation of petroleum, natural gas, minerals, or 
other similar resources; ^
- any construction, installation, agricultural, or engineering activity; ^
- any activity performed under contract with the United Nations; ^
- any activity performed to obtain a contract on your behalf to undertake any of 
the above activities. ^
 
Enter the name of the country where the activities were performed and a brief 
description of the project: ^
 
D. Throughout the qualifying period, were you an employer in one of the 
following categories? Yes or No ^
 
If yes, tick (enter an X) the applicable box below: 
- a person resident in Canada; ^
- a partnership in which persons resident in Canada, or corporations controlled 
by persons resident in Canada, own interests that exceed 10% of the fair market 
value of all interests in the partnership; or ^
- a corporation that is a foreign affiliate of a person resident in Canada. ^
 
Employer's name ^
Employer's account number ^
Name of the tax services office that processed a tax waiver for this credit (if 
one was requested) ^
 
I, (Print the name of the authorized officer) ^
, am an authorized signing officer of the business. I certify that the 
information given on this form is, to the best of my knowledge, correct and 
complete. 
 
Date (Year/Month/Day) ^
Signature of authorized officer ^
Telephone number (including area code) ^
 
 
T626 E (11) (Back) 
 
Part 2 - Overseas employment tax credit calculation 
 
Complete this part only if your employer answered yes to questions A, B, C, and 
D in Part 1. 
 
Limit based on period of employment 
 
Line 1 and line 6770: Number of days in the qualifying period (referred to in 
question A of Part 1) that are in the tax year identified on the front of this 
form and during which you were a resident of Canada for tax purposes ^
 
Line E: Enter the number of days from line 1 above and calculate as follows: ^
Multiplied by $80,000 divided by 365 = ^
 
Limit based on employment income 
 
Line 2: Employment income for the period referred to on line 1 (included on 
lines 101 and 104 of your return) ^
 
Employment deductions related to the amount on line 2 (if only some of the 
employment deductions relate to the amount on line 2, multiply the deductions by 
the number of days from line 1, then divide the result by 365): 
 
Line 3: Annual union, professional, or like dues (included on line 212 of your 
return) ^
 
Line 4: Registered pension plan deduction (included on line 207 of your return) 
^
 
Line 5: Other employment expenses (included on line 229 of your return) Specify: 
^
 
Line 6: Add lines 3 to 5. = ^
 
Line 7 and line 6772: Line 2 minus line 6 = ^
 
Line F: Amount from line 7 ^
multiplied by 80% = ^
 
Calculation of the allowable tax credit 
 
Line 8: Net income for the year (from line 236 of your return) ^
 
Line 9: Employee home relocation loan deduction (from line 248 of your return) ^
Line 10: Security options deductions (from line 249 of your return) ^
Line 11: Net capital losses of other years (from line 253 of your return) ^
Line 12: Capital gains deduction (from line 254 of your return) ^
Line 13: Other deductions (from lines 250 and 256 of your return) ^
Line 14 and line 6773: Add lines 9 to 13. = ^
Line G: Line 8 minus line 14 = ^
 
Line 15: Amount from line 39 of Schedule 1, Federal Tax, or from line 42 if you 
are a resident of Quebec or a deemed resident of Canada ^
 
Line 16: Non-refundable tax credits from line 350 of Schedule 1 ^
 
Line H: Line 15 minus line 16 = ^
 
Line 17 and line 6774: Enter the amount from line E or line F, whichever is less 
^
Divide by the amount from line G ^
Multiplied by Amount from line H = ^
=^
 
Enter the amount from line 17, on line 426 of Schedule 1. 
 
This amount may also be used to calculate a provincial or territorial overseas 
employment tax credit on your provincial or territorial Form 428. 
 
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