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K-KO
Level 1

How to report foreign business income tax amount, which is not known or paid at the time of filling the Canadian tax return

I am a resident of Canada but am currently operating a consulting business as a sole proprietor in Hong Kong. I remotely serve my Hong Kong clients from my principal home in Canada. I need to file tax returns in both HK and Canada for 2023. However, Hong Kong's income tax year starts from Apr 1, 2023 to Mar 31, 2024. So I don't know exactly how much tax I need to pay when I file my Canadian tax return for 2023. My question is whether or not I can enter an approximate (or unpaid) amount of tax from my own calculation when completing the Foreign Tax Credit (T2209) under foreign business income. If not allowed, can the actual tax paid be carried forward?

2 Replies

How to report foreign business income tax amount, which is not known or paid at the time of filling the Canadian tax return

Yes you can include an estimate then make an adjustment at a later date. Note that April 30, 2024 is the last day to make any tax payments, therefore you have time to file your taxes in April.

 

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K-KO
Level 1

How to report foreign business income tax amount, which is not known or paid at the time of filling the Canadian tax return

Got it. Thanks.