How do i know if I am able to claim foreign tax credit on my foreign income? am i supposed to declare taxes paid on foreign income either way or only if I am eligible?

[zo mohammady]

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

Please contact our phone support team or contact us directly on Facebook or Twitter if you require further assistance.