Insights
Nov 24, 2025
Mackisen
Seasonal Agricultural Workers from Other Countries — Montreal CPA Firm Near You: Residency Rules, Non-Resident Taxation, 183-Day Rule, and Treaty Protection
Seasonal agricultural workers come to Canada each year under government-supported programs, often from Mexico, Jamaica, Barbados, and Trinidad and Tobago. Although they work in Canada temporarily, their tax residency status determines how they are taxed. Seasonal workers do not automatically become Canadian residents just because they work here. Instead, Canada applies detailed residency rules to determine whether they are non-residents, deemed residents, or deemed non-residents.
This guide explains how residency status affects taxation, whether seasonal workers must pay tax on worldwide or Canadian income, how the 183-day rule works, how tax treaties protect foreign workers, and what employers and liaison officers must understand to help workers meet Canadian tax obligations.
1. Residency Status: The Foundation of Taxation
Seasonal agricultural workers are taxed in Canada based on residency status, not on their work permit, immigration program, or length of employment contract.
Seasonal workers can fall into one of these categories:
Non-resident
Deemed resident
Deemed non-resident
Unless a worker establishes significant residential ties to Canada, they will not be considered full Canadian residents.
Significant Residential Ties
These are the major ties that make someone a Canadian resident:
A home in Canada
A spouse or common-law partner in Canada
Dependants in Canada
Secondary Ties (supportive, but not decisive)
Personal property (car, furniture)
Social ties (church or organization memberships)
Economic ties (bank accounts, credit cards)
Canadian driver’s licence
Canadian passport
Provincial health insurance
Seasonal workers typically do not acquire these ties, especially when they stay in temporary employer-provided housing and return home at the end of the season.
2. Non-Residents (Most Seasonal Workers)
Most seasonal agricultural workers are non-residents because:
They do not establish significant residential ties in Canada
They stay in Canada for less than 183 days during the year
Tax Rules for Non-Residents
Non-residents pay Canadian tax only on Canadian-source income, typically their employment income.
Key points:
Employers withhold Canadian income tax, CPP/QPP (where applicable), and EI
Workers file a tax return only if:
They owe additional tax, or
They want a refund
Non-residents do not pay tax on foreign income
Non-residents do not qualify for Canadian benefits like GST/HST credit or CCB
Seasonal agricultural workers under this category follow the rules described in Non-Residents of Canada.
3. Deemed Residents (183-Day Rule)
Seasonal workers are considered deemed residents of Canada if they meet all of the following:
They do not establish significant residential ties in Canada
They stay in Canada for 183 days or more in the tax year
They are not considered resident of their home country under a tax treaty
Only a small number of workers fall into this category.
Tax Rules for Deemed Residents
Deemed residents:
Report worldwide income on their Canadian return
Pay federal tax + federal surtax instead of provincial tax
Can claim federal credits
Cannot claim provincial credits
Are eligible for the GST/HST credit
Must file a Canadian return
If the worker is in Canada for exactly or more than 183 days but the tax treaty applies (Mexico, Jamaica, Barbados, Trinidad & Tobago), they become deemed non-residents, not deemed residents.
4. Deemed Non-Residents (Tax Treaty Protection)
Many seasonal agricultural workers who cross the 183-day threshold are not deemed residents because Canada’s tax treaties with their home countries override the 183-day rule.
Countries with applicable tax treaties under the Seasonal Agricultural Workers Program:
Mexico
Jamaica
Barbados
Trinidad and Tobago
How Treaty Protection Works
If a worker:
Would otherwise be considered a deemed resident under the 183-day rule
But under a tax treaty is considered a resident of their home country
→ They become a deemed non-resident for Canadian tax purposes.
Tax Rules for Deemed Non-Residents
Same as regular non-residents:
Tax only on Canadian-source income
No worldwide income reporting
No eligibility for the majority of Canadian credits
Must file if required
Treaties prevent double taxation and keep the worker’s tax residence in their home country.
5. Practical Guide for Seasonal Workers
Most workers are non-residents
They report only Canadian employment income, not income earned at home.
Workers staying 183+ days
Check if their country has a treaty—if yes, they remain deemed non-residents.
Workers rarely establish residential ties
Employer-provided temporary lodging does not count as a residential tie.
Workers file a tax return when:
They owe tax
They want a refund
They need to provide proof of income
They use either:
Non-Resident Income Tax Package, or
The package for their province of employment (if required for Part I tax)
6. Guidance for Canadian Employers
Canadian employers must:
Withhold tax correctly
Issue T4 slips for all workers
Retain contracts and records for CRA review
Report foreign worker payroll like any other employee
Inform workers about tax filing obligations and available help
Employers do not determine residency; CRA does. But employers must collect accurate documentation.
7. Guidance for Liaison Officers (Embassy or Consulate Officials)
Liaison officers help seasonal workers:
Understand Canadian tax requirements
File returns if refunds are available
Ensure correct country of residence is provided to Canadian payers
Coordinate treaty application and documentation
Assist with residency determinations where necessary
Obtain correct mailing addresses or direct deposit information
They are key to supporting correct withholding under tax treaties.
8. Why Residency and Treaty Rules Matter
Correct residency determination prevents:
Double taxation
Incorrect withholding
Overpayment of tax
CRA reassessments
For seasonal workers, incorrect status can lead to losing refunds they are entitled to or paying unnecessary Canadian tax on foreign income.
Why Mackisen
With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps workers, employers, and liaison officers navigate Canada’s complex non-resident agricultural worker rules. We provide:
Residency classification
Non-resident tax return preparation
Treaty relief analysis
Part XIII vs Part I tax evaluations
Refund optimization
Employer compliance guidance
CRA audit defense for cross-border employment matters
If you are a seasonal agricultural worker, employer, or liaison officer needing expert guidance on Canadian tax residency and filing requirements, Mackisen ensures full compliance while maximizing benefits and minimizing tax burdens.
