How to report stock option exercise for a foreign (Paris) company

[TurboTaxMonica1]

Were these employee stock options? Did this foreign company issue you any T4 slips? Was there any foreign tax paid on this transaction?

[alandickinson49]

Yes they were employee stock options. As I am now a retiree, they are administered by a bank in France. I did not receive a T4 and yes there were withholding taxes.

[TurboTaxMonica1 · Accepted solution]

Section 7 of the Income Tax Act governs the taxation of benefit received from the exercise of employee stock options. 

In this case, it is unclear to me whether you are still an employee as you have indicated that you are now retired. However, I'm assuming that you only acquired these options as a result of your employment, therefore, I think section 7 would still apply in your case.

In general, the employment benefit you need to report is the difference between the fair market value and the exercise price. Generally, this is reported on an employee's T4, but since this was not, you can report this as Foreign Employment Income (make sure you convert to CAD).

Go to navigation bar at the top, click on Income > T-Slips > Foreign Income. It will bring you to the foreign income slip. Enter the source country France, your foreign employment income as well as the foreign taxes paid. The latter will calculate your foreign tax credit.