Residents of Canada must declare and pay taxes on their gross world income. However, many countries also tax income for which they are the source. For example, interest earned in a foreign country will often have income tax withheld at the source and may also be taxed in Canada on the full amount of interest, rather than the net payment received. While Canada’s international tax treaties seek to lessen these conflicts, the Federal Foreign Tax Credit helps ensure that Canadians do not pay double taxes on their income.
You can check these following link for more information:
T2209 Tax Form: Federal Foreign Tax Credits in Canada
Canada’s Foreign Income Tax Credit
Foreign Income and Tax Treaties
Income Tax Folio S5-F2-C1, Foreign Tax Credit
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