The Overseas Employment Tax Credit may be claimed when your employer certifies your eligibility for performing work outside Canada for at least 6 consecutive months. Both you and your employer are required to complete this form in order for you to claim the credit. Part 1 of the T626 is filled out by your employer and part 2 is completed by you.

If you paid taxes to the foreign country where you were working, you may also be eligible for a partial foreign tax credit.

The Overseas Employment Tax Credit is being phased out over a four-year period and will be eliminated for 2016 and subsequent years.