Tax Relief for Personnel Deployed on Designated International Operational Missions
The Government of Canada provides tax relief to members of the Canadian Armed Forces (CAF) and police officers deployed on international high- and moderate-risk operational missions. This tax relief recognizes the special contribution that CAF members and police officers make to international peace and stability while serving their country abroad.
Eligible CAF members and police officers may claim a deduction against taxable income in respect of income earned while deployed on such missions. The maximum amount that an individual may deduct in a taxation year prior to the 2017 taxation year cannot exceed the highest level of pay earned by a non-commissioned member of the CAF.
For personnel deployed on high-risk missions—i.e., missions assessed by the Department of National Defence as carrying a risk score between 2.50 and 4.00—tax relief is automatically provided for the period over which the mission is assessed as being high-risk.
For moderate-risk missions—i.e., missions carrying a risk score between 2.00 and 2.49—tax relief is provided when the mission has been designated by the Minister of Finance, and for the period over which the mission is assessed as being moderate-risk.
On August 17, 2018, the Minister of Finance added the following moderate-risk mission to the previous designated list of missions for tax relief:
Designated International Operational Missions
| Mission name | Beginning of the applicable period for tax relief | End of the applicable period for tax relief* |
|---|---|---|
| Newly Designated International Operational Mission | ||
| Op RENDER SAFE 2016 (Solomon Islands) | September 4, 2016 | October 8, 2016 |
| Previously Designated International Operational Missions | ||
| Op IMPACT (CTAT Lebanon, Lebanon) | October 4, 2016 | December 31, 2016 |
| Iraq, Baghdad (VCDS OUTCAN), Baghdad, Iraq | October 11, 2015 | May 16, 2016 |
| Op SOPRANO (Juba, South Sudan) | September 1, 2015 | December 31, 2016 |
| Op RENDER SAFE (Bougainville Island, Papua New Guinea) | October 7, 2014 | December 10, 2014 |
| Op IMPACT (Kuwait) | October 5, 2014 | December 31, 2016 |
| Op SIRONA (Sierra Leone) | December 17, 2014 | July 2, 2015 |
| Op MINUSMA (Bamako, Mali) | December 22, 2014 | December 31, 2016 |
| Op CROCODILE | July 1, 2015 | December 31, 2015 |
| Op FOUNDATION (Qatar) | April 1, 2010 | May 31, 2015 |
| Op ATHENA / ISAF Headquarters Detachment Qatar | April 1, 2010 | December 31, 2011 |
| Op RENAISSANCE | November 12, 2013 | December 27, 2013 |
| Op HERRICK (Camp Bastion, Helmand, Afghanistan) | June 1, 2012 | November 30, 2012 |
| Op AFGHAN ASSIST (Mazar-e-Sharif, Afghanistan) | June 1, 2012 | February 24, 2014 |
| Op HERRICK (Kandahar Airfield, Afghanistan) | July 31, 2013 | August 31, 2013 |
| January 23, 2014 | May 3, 2014 | |
| * As of the 2017 taxation year, tax relief becomes automatic for CAF personnel and police deployed on named international operational missions. | ||
For national security reasons, classified missions that are designated are not listed. For such missions, the Department of National Defence and/or Public Safety Canada are responsible for contacting eligible CAF members and police officers.
On May 18, 2017, the Government announced its intention to extend tax relief automatically to all CAF members and police officers for the period over which they are deployed on an international operational mission, regardless of the risk score associated with the mission. In addition, the Government annouced it would increase the maximum amount that an individual may deduct in a taxation year to the highest level of pay earned by a Lieutenant-Colonel (General Service Officers) of the Canadian Armed Forces.
The legislative amendment to the Income Tax Act to enhance the deduction was included in Bill C-74, which received Royal Assent on June 21, 2018. These measures apply to the 2017 and subsequent taxation years.
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