My son received an invitation from a university in Canada to do an internship for a period less than 3 months. He will be paid financial assistance of CAD 3000.00. Kindly clarify the following questions :

  1. Whether financial assistance of this nature is taxable?
  2. In case tax is applicable, what rate is applied?
  3. How can a refund be claimed?
  • 2
    Is this his only Canadian income? What country is he coming from? – littleadv Sep 30 '13 at 22:29

According to this pamphlet from the Candian Tax Authority, there are no specific gift taxes the giver of the gift. If this is the only Canadian income he will be receiving over the course of the year he doesn't make enough to be taxed. As such, there is no tax being paid, and there is no tax owed within Canada.

Whether or not the income is taxable in the home country is another matter. For that, you would need to check your tax laws.

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