What incomes can & what incomes can't be counted in LICO 2022

[CanadaFar]

Hi, I would like to know for example if I have worked remotely with a company in my home country in middle east, and I have earned money from them, would that income also be counted in LICO? and would I need to pay tax on it? also, is there any percentage of it tax free, and is tax-free income also included in the LICO? Also, what are the requirements for the proof of my income abroad that I need to submit? And what other incomes are counted toward it? Thanks!

 

[scylla]

Hi, I would like to know for example if I have worked remotely with a company in my home country in middle east, and I have earned money from them, would that income also be counted in LICO? and would I need to pay tax on it? also, is there any percentage of it tax free, and is tax-free income also included in the LICO? Also, what are the requirements for the proof of my income abroad that I need to submit? And what other incomes are counted toward it? Thanks!

I assume you are asking about PGP sponsorship?

Only income declared in your CRA (Canadian) tax return and that is included on line 150 of your return can be counted towards LICO. If it doesn't appear in your CRA return, it doesn't count.

While the income may be tax free in the location where you earned it this isn't necessarily how it will be treated in your CRA return. If you have further questions, you may want to get a consult with a tax professional in Canada.

 

[canuck78]

Hi, I would like to know for example if I have worked remotely with a company in my home country in middle east, and I have earned money from them, would that income also be counted in LICO? and would I need to pay tax on it? also, is there any percentage of it tax free, and is tax-free income also included in the LICO? Also, what are the requirements for the proof of my income abroad that I need to submit? And what other incomes are counted toward it? Thanks!

If you have been working in your home country remotely you were required to report it the following year in your taxes. Have you not been doing so? You must always declare international income. How much it is taxed depends on any tax treaties between countries. That generally prevents double taxation. If there is no tax in the country then you would be taxed at the Canadian rate. International income may or may not count towards LICO. It depends on where you were living, whether you were a tax resident, etc. If you were living in Canada and working remotely for a country in the Middle East it will count but you also had to deClare the income on your taxes and payt tax on the income you earned. Seems as though you may need to go back and refile taxes for previous years. Were you working remotely and claiming EI, CRB, CREB?