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Canada Announces Tax Exemption For Military Personnel

by Mike Godfrey, Tax-news.com, Washington

19 May 2017


The Canadian Government will exempt the military salaries of Canadian Armed Forces personnel deployed on named international operations from federal income taxes.

The exemption will apply up to and including the pay level of Lieutenant-Colonel. The tax relief will also apply to police officers deployed on international operational missions.

The Government intends to make the measure retroactive to January 1, 2017. It will not affect the assessment and awarding of existing hardship and risk allowances earned by Canadian Armed Forces personnel deployed abroad.

Defence Minister Harjit S. Sajan said: "When our women and men in uniform deploy internationally, they and their families make great sacrifices on our behalf. Military families are the strength behind the uniform and we must do more to acknowledge that our people are our most important asset."

"The Government of Canada will recognize their sacrifices with these important tax relief measures."

There are approximately 1,450 Canadian Armed Forces personnel currently deployed on international military operations.

TAGS: tax | Canada | tax breaks | individual income tax

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