Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Oct 30, 2019 7:00:34 PM

Question: my spouse, Canadian resident, has been working for Japanese employer, and paying tax in Japan, in 2018. How do we file, keep CRA happy, and not be taxed twice?

0 3 5473
1 Best answer
Level 11
Oct 30, 2019 7:00:35 PM

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.

3 Replies
Level 11
Oct 30, 2019 7:00:35 PM

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.

New Member
Mar 29, 2022 9:14:34 AM

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? 

New Member
Apr 10, 2022 5:06:18 PM

I was wondering the same thing.  I'd love an answer as well.