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New Member
posted Oct 30, 2019 7:06:09 AM

Where must I declare my foreign business income which was won after I had moved from Canada permanently?

I’m a German citizen who resided in Canada for most of 2016 (January through July). I worked as a self-employed contractor. While in Canada from January through July, 2016, I had business income from my work as a self-employed contractor. Then, end of July, 2016, I permanently moved back to Germany. For the remainder of 2016, I worked in Germany as a self-employed contractor and thus had business income from this. I have not been back to Canada since.
As far as I understand, I have to input my German business income onto the form "Your residency" under "Income from Foreign sources, plus Canadian sourced Part XIII income, for the part of the year when you were not a resident of Canada.” I have done this.
My question is: where else must I declare my German business income (which, again, was won once I had moved from Canada and was once again a resident of Germany)?
Specifically, in your section titled “Income & work related expenses,” there is the question “Did you have other income that you have not yet told us about? Examples include scholastic, foreign, disability, alimony, child support, death benefits, and working income tax benefit payments.” I answered this with YES and checked the box "Foreign - Income from outside of Canada” underneath.
Now, when getting to the "Foreign Income” section and trying to add a new "Foreign Slip," there isn’t any field in which I can input my business income. The available fields are only: foreign employment income, pension income, investment income and "Other income (line 130)”. I read line 130, but it does not seem to pertain to business income (rather for special cases like tax treaties, scholastic income, etc). Should I note the income I won in Germany as a self-employed contractor in this “Other Income (line 130)” section?
Many thanks in advance for your time and help with this matter.

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3 Replies
New Member
Oct 30, 2019 7:06:11 AM

If you are a non-resident then you would report income only earned in Canada or connected to Canada. Are you filing a 2016 tax return upon leaving Canada?

New Member
Oct 30, 2019 7:06:12 AM

Thanks for your response, Terry!
Yes, I am filing a 2016 tax return upon leaving Canada after having been a resident for more than 183 days.
Does that mean I have to input my German business income ONLY onto the form "Your residency" under "Income from Foreign sources, plus Canadian sourced Part XIII income, for the part of the year when you were not a resident of Canada.”?

After I became a non-resident of Canada I worked for Canadian clients in Germany and invoiced them from my German business. Would that still be “Income from Foreign Sources” or, as you call it, income connected to Canada?

Thank you so much for your help.

New Member
Oct 30, 2019 7:06:14 AM

You would consider this to be German Business income and not subject to taxes in Canada. Report as income after leaving Canada in the section you noted.