I-3 - Taxation Act

Section 737.22.0.3 Disposition versions

2006-03-01

737.22.0.3. An individual who, at any time, holds employment as a foreign specialist with an eligible employer may deduct, in computing the individual’s taxable income for a taxation year, an amount not greater than the aggregate of all amounts each of which is determined, in respect of a specified period of the individual in relation to that employment, by the formula

A × (B − C).

In the formula provided for in the first paragraph,

(a)  A is

i.  if the eligible employer is a corporation to which subparagraph iii of paragraph a of section 771.12 applies and the individual entered into the individual’s employment contract with the eligible employer between 12 June 2003 and 31 March 2004, or entered into the contract before 13 June 2003 but began to perform the duties of that employment after 1 September 2003, 75%,

i.1.  if the eligible employer is a corporation to which subparagraph iii of paragraph a of section 771.12 applies or that is described in paragraph f of the definition of “eligible employer” in the first paragraph of section 737.22.0.1 and the individual entered into the individual’s employment contract with the eligible employer after 30 March 2004,

(1)  100%, if that specified period of the individual is included in the first or second year of the period described in paragraph c of the definition of “specialized activity period” in the first paragraph of section 737.22.0.1,

(2)  75%, if that specified period of the individual is included in the third year of the period described in that paragraph c,

(3)  50%, if that specified period of the individual is included in the fourth year of the period described in that paragraph c, or

(4)  25%, if that specified period of the individual is included in the fifth year of the period described in that paragraph c, and

ii.  in any other case, 100%;

(b)  B is the portion of the individual’s eligible income for the year, in relation to that employment, that is certified by the eligible employer in prescribed manner and that may reasonably be attributed to that specified period of the individual; and

(c)  C is the aggregate of all amounts that the individual may deduct in computing the individual’s income for the year under Chapter III of Title II of Book III and that may reasonably be attributed to the individual’s employment as a foreign specialist during that specified period of the individual.

1997, c. 85, s. 116; 2000, c. 39, s. 57; 2004, c. 21, s. 178; 2005, c. 38, s. 124.