Income tax for Canadians on a working holiday in France

The following guidance addresses Canadian nationals who worked in France. If you never worked in France, you do not have any fiscal ties with or tax obligations to France. With regard to such individuals, the government of Canada states:

As a factual resident [of Canada], your income is taxed as if you never left Canada. (official source)

If you did work in France, please continue reading.

1. You are in the first 12 months of your working holiday:

• Whether you worked in Canada or not last year, you must declare your Canadian earnings (even if it was $0) to the Canadian federal government, since you were a resident of Canada for some period in the year. Visit the page on Personal income tax to produce a declaration.
• For France: As explained in the previous chapter, you must declare all French income to France tax authorities as well. Don’t include what you earned in Canada.

2. You have extended your working holiday via an APS:

• According to the Canadian government, you are still a factual resident of Canada (due to significant residential ties) but a NON resident for income tax purposes, since you will have established fiscal ties with France, a country with which Canada has a tax treaty (official source).
• Since you are no longer a resident for income tax purposes, you may (but are not obligated to) request a credit from Canada by declaring your Canadian income from last year (which is likely $0). Visit the page on Personal income tax to produce a declaration.
• For France: As explained in the previous chapter, you must continue to declare all French income to France tax authorities as well.

Definition of residence

As a working holiday maker in France (temporary), you remain a factual resident in Canada. This is because you likely maintain significant residential ties with Canada during your stay abroad (official source). Note, however, that being a factual resident is not necessarily the same thing as being a resident for income tax purposes. In any case, it is recommended to notify the Canada Revenue Agency of your departure.

If you are in an exceptional situation or wish to obtain the CRA’s option on your residency status, complete and submit form NR74 or form NR73 to the CRA.

Tax treaty between Canada and France

There is a tax treaty between Canada and France that exempts individuals from double taxation: income or gains arising in France shall be deducted from any Canadian tax payable in respect of such profits, income or gains (Article 23, full text of the Convention).

FAQ

Which income tax package do I choose for my federal taxes?

Each year that you spend abroad, you will have to use the general package for taxes and benefits from the Canada Revenue Agency, for the province or territory where you maintain residential ties, i.e. the province or territory where you resided before leaving Canada.

Am I entitled to the same benefits and credits as if I physically resided in Canada?

Yes, as long as you file your taxes every year. If you are entitled to Canada child benefit and Universal child care benefit (UCCB), for example, you will continue to receive them as long as you still meet eligibility criteria and file taxes annually.

For more information on this topic, you may visit the website of the Canada Revenue Agency.

What is the deadline for Canadian federal income tax?

Generally, you must submit your personal income tax declaration by April 30th of the year following the tax year.

If you or your spouse have corporation income tax to declare, that declaration must be sent by June 15th of the year following the tax year.

What is the deadline to pay any owed balance to the CRA?

If you owe money to the CRA, you must pay the balance by April 30th of the year following the tax year, regardless of when you submit your tax declaration. If you fail to do this, you may be subject to penalties on the unpaid balance.

Where should I go if I have other questions about federal taxes?

If you have additional inquiries, you may Contact the Canada Revenue Agency.