Overseas Employment Tax Credit Phased Out by 2016

For contracts made after March 28, 2012, an employee's claim for the Overseas Employment Tax Credit will be reduced.

In 2012 the maximum claim is $80,000 or 80% of their qualifying employment income. For 2013, the maximum claim will be $60,000 or 60% of their qualifiying employment income. The rates will reduce to 40% in 2014, 20% in 2015 and no Overseas Employment Tax Credit will be available for 2016 and subsequent tax years.