No need to worry. Canada does have a treaty with Japan to prevent double taxation. At tax time your spouse will declare their income as foreign employment income and enter the tax that has been deducted in Japan as a credit against that income.
One note: The income (and tax deducted) need to be entered in CAD. When it's time to file your returns, use the annual exchange rate listed here: https://www.bankofcanada.ca/rates/exchange/annual-average-exchange-rates/
The rate will be updated at the end of the year to reflect the average exchange rate for the whole year.
No need to worry. Canada does have a treaty with Japan to prevent double taxation. At tax time your spouse will declare their income as foreign employment income and enter the tax that has been deducted in Japan as a credit against that income.
One note: The income (and tax deducted) need to be entered in CAD. When it's time to file your returns, use the annual exchange rate listed here: https://www.bankofcanada.ca/rates/exchange/annual-average-exchange-rates/
The rate will be updated at the end of the year to reflect the average exchange rate for the whole year.
I am currently in a similar situation right now. Does this mean that if I declare and pay taxes in Canada for the services in Japan, I don't have to pay taxes in Japan?
I was wondering the same thing. I'd love an answer as well.
rinkaaan2011367
New Member
grahamT
Returning Member
rick_boyle
New Member
songqn
New Member
Hopstick
New Member
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.