Seasonal Agricultural Workers

• Are seasonal workers taxed in Canada?
• What are residential ties?
  • Non-residents
  • Deemed residents
  • Deemed non-residents
• Tax treaties
• For more information....
  • Seasonal Agricultural Workers Program (includes important information on payroll deductions)
  • IT-221, Determination of an Individual's Residence Status

This Web page provides residency information for:

• seasonal agricultural workers from other countries;
• their Canadian employers;
• liaison officers who help workers meet their tax obligations in Canada (government officials -- usually working at an embassy or consulate -- who are responsible for administering the Seasonal Agricultural Workers Program).

Top of Page

Are seasonal workers taxed in Canada?

Taxation in Canada is based on residency. Therefore, a seasonal agricultural worker's residency status in Canada affects how that worker is taxed.

Unless seasonal workers have established significant residential ties, they're considered to be one of the following types of residents for tax purposes:

• non-residents;
• deemed residents;
• deemed non-residents.

Top of Page

What are residential ties?

Residential ties include:

• a home in Canada;
• a spouse or common-law partner (see the definition in the General Income Tax and Benefit Guide) and dependants in Canada;
• personal property in Canada, such as a car or furniture.

Other ties that may be relevant include:

• social ties in Canada;
• a Canadian driver's licence;
• a Canadian bank account or credit cards;
• health insurance with a Canadian province or territory.

For more information, please see IT-221, Determination of an Individual's Residence Status.

Top of Page

Non-residents

Seasonal workers are non-residents for tax purposes if they:

• do not establish sufficient residential ties with Canada; and
• stay in Canada for less than 183 days in the tax year.

A non-resident of Canada is subject to Canadian income tax only on income from Canadian sources.

• For a seasonal worker, employment income is usually the only source of Canadian income.

Top of Page

Deemed residents

Seasonal workers are deemed residents for tax purposes if they:

• have not established residential ties with Canada; and
• stay in Canada for 183 days or more in the tax year; and
• are not considered a resident of another country under the terms of a tax treaty.

Deemed residents of Canada are subject to Canadian income tax on their world income (income from all sources, both inside and outside Canada).

Top of Page

Deemed non-residents

Seasonal workers who would otherwise be deemed residents are in fact deemed non-residents for tax purposes if they're considered to be a resident of another country under the terms of a tax treaty between Canada and that country.

• Deemed non-residents are taxed the same as non-residents of Canada.

Top of Page

Tax treaties

Canada currently has income tax treaties with the following countries that have workers participating in the Seasonal Agricultural Workers Program:

• Mexico;
• Barbados;
• Jamaica;
• Trinidad and Tobago.

For information about a tax treaty between Canada and a specific country, please contact the International Tax Services Office.