I came across this question at the very beginning of filing my tax return. I arrived at Canada last December and became a Canadian tax resident. For the eleven months before coming to Canada, I had taxable employment income and non-taxable investment income from my home country but no Canadian sourced income. I don't know why I need to state my income when I was not a Canadian resident. Can anybody help me answer this question please? btw, what's the meaning of Part XIII income?
The income earned outside of Canada in the year you arrived will have been already taxed and won’t be taxed again in Canada (meaning no double-taxation). However, it is important to record this income on your tax return as it helps to calculate which non-refundable tax credits you may be eligible to claim in Canada.
Part XIII income is generally passive, investment income in Canada. Part XIII income is subject to Part XIII income tax, which is 25% of the gross amount. Some common examples of passive income streams are dividends, interest, rent, and royalties.
Information on foreign income, as per the Canada Revenue Agency (CRA).
Information on tax treaties and double-taxation, as per the Canada Revenue Agency (CRA).
More information on Part XIII, as per the Canada Revenue Agency (CRA).
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