CRA indicates that scholarships received by non-resident temporary workers for French language training would not be included in their taxable income earned in Canada

Non-resident temporary workers take French language courses offered by general Quebec training centres for free, but may receive French language scholarships to cover their living expenses.

CRA concluded that the non-residents are not required to include such scholarship amounts in computing their taxable income earned in Canada for the year since, having regard to the tests for such inclusion pursuant to ss.115(1)(a)(v), 115(2)(e)(ii) and 56(1)(n), the courses do not qualify as being at the post-secondary level (i.e., completion of a secondary education is not a prerequisite). However, those amounts must be included in their worldwide income for the purposes of the computation under s. 118.94 (allowing the deduction by non-residents of various personal credits), which essentially requires that substantially all of their worldwide income for the year be included in their taxable income earned in Canada for that year. The basic exemption of up to $500 provided in s. 56(3)(c) would be available.

Neal Armstrong. Summary of 1 May 2025 External T.I. 2024-1030911E5 F under s. 118.94.