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New Member
posted Oct 30, 2019 11:21:12 PM

Can I avoid double taxation? I filled T1135 because I have bank interest and real estate rental income in S. Korea. both income are taxed in Korea.

After I create T1135, I want to know which fields need to be filled to avoid double taxation.

0 6 1866
6 Replies
Level 13
Oct 30, 2019 11:21:14 PM

Firstly you must determine your residency status for taxation purposes when reporting ANY foreign sourced income to the CRA.

Because Canada has a tax treaty with Korea, you will avoid double taxation. So you can apply for a Foreign Tax Credit.

  • Apply for the FTC -in your "Find" icon at the top of the page, type in "Foreign Tax Credit" which will open the form needed to apply for this credit, if applicable.

You can claim a foreign tax credit for the taxes that you paid in Korea. The foreign tax credit  will be the lesser of two amounts(If applicable):

  • The income tax you paid on the foreign country
  • The Canadian tax payable on the foreign source of income.

Then the question of the T1135 - We want to know about your World Income. It boils down to whether you get a full year or is it prorated.

Level 13
Oct 30, 2019 11:21:15 PM

@reynardfox - what did I miss?

New Member
Oct 30, 2019 11:21:17 PM

@TurboTaxLise Sorry this answer is helpful, but I confuse the income already written in t1135,should be rewritten elsewhere? Do I have to report twice or I fill just in t1135? Thanks for your help.

Level 13
Oct 30, 2019 11:21:18 PM

@reynardfox  - You report it in your T1135 .You do not report it twice.

New Member
Oct 30, 2019 11:21:19 PM

@TurboTaxLise TurboTax's T1135 requires only income and does not include taxes already paid to Korea. I thought I have to fill T1135 than foreign tax credit. You mean If I fill in T1135, CRA  understand that I have already paid taxes to Korea? could tell me about that I just only fill in T1135, correct? Thank you so much.

Level 13
Oct 30, 2019 11:21:21 PM

Please go back and reread all the links provided to you in the answer above, to understand the details of filing this income and taxes paid. For taxes paid you would apply for the FTC, which is all explained above.