Budget 2011 extended eligibility for the Tuition Tax Credit to all occupational, trade and professional examination fees, where the examination is required to obtain a professional status, or certification or licence in a trade, that is recognized by federal or provincial statute and allows the individual to practise the profession or trade in Canada. This tax relief builds on the support provided to apprentices through the Apprentice Incentive Grant provided in Budget 2006 and the Apprenticeship Completion Grant, which was introduced in Budget 2009.
Through Canada’s Economic Action Plan, the federal government extended eligibility for the Tuition Tax Credit to all occupational, trade and professional examination fees, where the examination is required to obtain a professional status, or certification or licence in a trade, that is recognized by a federal or provincial law.
About the Program
Prior to the announcement of this measure, the tax system did not recognize the fees paid by workers in regulated occupations, such as medicine, law, accounting, or the skilled trades, who must complete examinations in order to practice their profession or trade, unless the costs of the examination were included in the course tuition fee.
The measure extends eligibility for the Tuition Tax Credit to fees paid to an educational institution, professional association, provincial ministry, or other similar institution to take an examination that is required to obtain a professional status recognized by federal or provincial statute, or to be licensed or certified in order to practice a profession or trade in Canada.
How It Works
The measure applies to fees paid in respect of examinations taken in the 2011 and subsequent taxation years. Taxpayers may claim the Tuition Tax Credit for certification examination fees when they file their tax return.
Who Is Eligible
Workers who incur occupational, trade, or professional examination fees of over $100 will be eligible for the Tuition Tax Credit if the examination is required to obtain a professional status, certification, or licence in a trade that is recognized by federal or provincial statute and allows the individual to practice the profession or trade within Canada.
Initiative Update
Legislation to implement this measure received Royal Assent on December 15, 2011. Taxpayers can claim the Tuition Tax Credit for certification examination fees when they file their tax return.
Find Out More
For more information, please visit the website of the Canada Revenue Agency or the Department of Finance Canada.