Taxes After JET

JET Programme Canada takes no responsibility for the accuracy of the information contained herein, nor accepts responsibility for any financial loss incurred or any legal action taken against anyone (whether or not they are associated with the JET Programme) as a result of information contained in or omitted from this article.

Exempt From Canadian Income Tax

Generally speaking, income taxes in Canada are imposed on the basis of residency status as well as the source of income. Factual residents and deemed residents of Canada are subject to income tax on their world income. Non-residents of Canada are subject to income tax in Canada only on their Canadian income source. JET Programme participants employed by a local authority in Japan are considered factual residents of Canada and are required to report their world income by April 30, including income from the JET Programme on their Canada income tax returns. However, such participants are exempt from Canadian income tax on their employment income earned under the JET Programme in accordance with Article 18 of the Canada-Japan Tax Treaty. Income earned under the JET Programme is reported at line 104 of the general T1 return and a corresponding deduction claimed at line 256 (line numbers may be subject to change). In order to be eligible for the specific provisions, you must attach a letter to your tax return indicating that this income was received on the JET Programme as well as the Japanese Gensen choshu hyo (Statement of Earnings). This is similar to the Canadian T4 form, which shows income earned and income tax paid in Japan.

Canadian JET Programme participants are liable for Japanese income tax and will receive an adjusted gross salary to compensate for this taxation by their contracting organisation. Canadian taxation information and forms can be accessed electronically by visiting the Canadian Revenue Agency website.