Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Act current to 2014-10-27 and last amended on 2014-06-27. Previous Versions

Marginal note:Tuition credit
  •  (1) For the purpose of computing the tax payable under this Part by an individual for a taxation year, there may be deducted,

    • (a) subject to subsection (1.1), where the individual was during the year a student enrolled at an educational institution in Canada that is

      • (i) a university, college or other educational institution providing courses at a post-secondary school level, or

      • (ii) certified by the Minister of Employment and Social Development to be an educational institution providing courses, other than courses designed for university credit, that furnish a person with skills for, or improve a person’s skills in, an occupation,

      an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the educational institution, except to the extent that those fees

      • (ii.1) are paid to an educational institution described in subparagraph (i) in respect of courses that are not at the post-secondary school level,

      • (ii.2) are paid to an educational institution described in subparagraph (ii) if

        • (A) the individual had not attained the age of 16 years before the end of the year, or

        • (B) the purpose of the individual’s enrolment at the institution cannot reasonably be regarded as being to provide the individual with skills, or to improve the individual’s skills, in an occupation,

      • (iii) are paid on behalf of, or reimbursed to, the individual by the individual’s employer and the amount paid or reimbursed is not included in the individual’s income,

      • (iii.1) are fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of Her Majesty in right of Canada or a province designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance is not included in computing the individual’s income,

      • (iv) were included as part of an allowance received by the individual’s parent on the individual’s behalf from an employer and are not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix), or

      • (v) are paid on the individual’s behalf, or are fees in respect of which the individual is or was entitled to receive a reimbursement, under a program of Her Majesty in right of Canada designed to assist athletes, where the payment or reimbursement is not included in computing the individual’s income;

    • (b) where the individual was during the year a student in full-time attendance at a university outside Canada in a course leading to a degree, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the university, except any such fees

      • (i) paid in respect of a course of less than three consecutive weeks duration,

      • (ii) paid on the individual’s behalf by the individual’s employer to the extent that the amount of the fees is not included in computing the individual’s income, or

      • (iii) paid on the individual’s behalf by the employer of the individual’s parent, to the extent that the amount of the fees is not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix);

    • (c) where the individual resided throughout the year in Canada near the boundary between Canada and the United States if the individual

      • (i) was at any time in the year a student enrolled at an educational institution in the United States that is a university, college or other educational institution providing courses at a post-secondary school level, and

      • (ii) commuted to that educational institution in the United States,

      an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees for the individual’s tuition paid in respect of the year to the educational institution if those fees exceeds $100, except to the extent that those fees

      • (iii) are paid on the individual’s behalf by the individual’s employer and are not included in computing the individual’s income, or

      • (iv) were included as part of an allowance received by the individual’s parent on the individual’s behalf from an employer and are not included in computing the income of the parent by reason of subparagraph 6(1)(b)(ix); and

    • (d) subject to subsection (1.1), if the individual has taken an examination (in this section referred to as an “occupational, trade or professional examination”) in the year that is required to obtain a professional status recognized under a federal or provincial statute, or to be licensed or certified as a tradesperson, where that status, licence or certification allows the individual to practise the profession or trade in Canada, an amount equal to the product obtained when the appropriate percentage for the year is multiplied by the amount of any fees paid in respect of the occupational, trade or professional examination to an educational institution referred to in paragraph (a), a professional association, a provincial ministry or other similar institution, except to the extent that the occupational, trade or professional examination fees

      • (i) are paid on behalf of, or reimbursed to, the individual by the individual’s employer and the amount paid or reimbursed is not included in the individual’s income, or

      • (ii) are fees in respect of which the individual is or was entitled to receive a reimbursement or any form of assistance under a program of Her Majesty in right of Canada or a province designed to facilitate the entry or re-entry of workers into the labour force, where the amount of the reimbursement or assistance is not included in computing the individual’s income.

  • Marginal note:Minimum amount

    (1.1) No amount may be deducted for a taxation year by an individual under paragraph (1)(a) or (d) in respect of any fees paid to a particular institution unless the total of the fees described in those paragraphs and paid to the particular institution in the year by the individual exceeds $100.

  • Marginal note:Application to deemed residents

    (2) Where an individual is deemed by section 250 to be resident in Canada throughout all or part of a taxation year, in applying subsection (1) in respect of the individual for the period when the individual is so deemed to be resident in Canada, paragraph (1)(a) shall be read without reference to the words “in Canada”.

  • Marginal note:Inclusion of ancillary fees and charges

    (3) For the purpose of this section, “fees for an individual’s tuition” includes ancillary fees and charges that are paid

    • (a) to an educational institution referred to in subparagraph 118.5(1)(a)(i), and

    • (b) in respect of the individual’s enrolment at the institution in a program at a post-secondary school level,

    but does not include

    • (c) any fee or charge to the extent that it is levied in respect of

      • (i) a student association,

      • (ii) property to be acquired by students,

      • (iii) services not ordinarily provided at educational institutions in Canada that offer courses at a post-secondary school level,

      • (iv) the provision of financial assistance to students, except to the extent that, if this Act were read without reference to subsection 56(3), the amount of the assistance would be required to be included in computing the income, and not be deductible in computing the taxable income, of the students to whom the assistance is provided, or

      • (v) the construction, renovation or maintenance of any building or facility, except to the extent that the building or facility is owned by the institution and used to provide

        • (A) courses at the post-secondary school level, or

        • (B) services for which, if fees or charges in respect of the services were required to be paid by all students of the institution, the fees or charges would be included because of this subsection in the fees for an individual’s tuition, and

    • (d) any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s tuition and that is not required to be paid by

      • (i) all of the institution’s full-time students, where the individual is a full-time student at the institution, and

      • (ii) all of the institution’s part-time students, where the individual is a part-time student at the institution,

      to the extent that the total for the year of all such fees and charges paid in respect of the individual’s enrolment at the institution exceeds $250.

  • Marginal note:Ancillary fees and charges for examinations

    (4) For the purpose of this section, “fees paid in respect of the occupational, trade or professional examination” of an individual includes ancillary fees and charges, other than fees and charges included in subsection (3), that are paid to an educational institution referred to in subparagraph (1)(a)(i), a professional association, a provincial ministry or other similar institution, in respect of an occupation, trade or professional examination taken by the individual, but does not include any fee or charge to the extent that it is levied in respect of

    • (a) property to be acquired by an individual;

    • (b) the provision of financial assistance to an individual, except to the extent that, if this Act were read without reference to subsection 56(3), the financial assistance would be required to be included in computing the income, and would not be deductible in computing the taxable income, of the individual;

    • (c) the construction, renovation or maintenance of any building or facility; or

    • (d) any fee or charge for a taxation year that, but for this paragraph, would be included because of this subsection in the fees for the individual’s occupational, trade or professional examination and that is not required to be paid by all the individuals taking the occupational, trade or professional examination to the extent that the total for the year of all such fees and charges paid in respect of the individual’s fees for the occupational, trade or professional examination exceeds $250.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 1 (5th Supp.), s. 118.5;
  • 1994, c. 7, Sch II, s. 92, Sch. VIII, s. 56, c. 21, s. 54;
  • 1996, c. 11, s. 95;
  • 1998, c. 19, ss. 26, 135;
  • 2005, c. 34, s. 80;
  • 2011, c. 24, s. 29;
  • 2013, c. 34, s. 251, c. 40, ss. 50, 238.