Foreign Income

When it asks, "What was your income from foreign-sources and Canadian sourced Part XIII income for the part of the year that you were not a Canadian resident?" do I enter my GROSS foreign income or my NET foreign income?

1075

Level 13

Mar 7, 2020 11:19:36 AM

Anytime you must enter your foreign income sources within or outside of Canada, it is always gross income before taxes. Because based on the income source and the country that income came from will determine if you get a Foreign tax credit or not.

Part XIII tax is a withholding tax imposed on certain amounts you par or credit to non-residents.

Part XIII – Section 216 is Canadian rental income from real or immovable properties or timber royalties.

From the CRA, see below links to assist you further:

Non-residents of Canada
Income Tax Guide for Electing Under Section 216 - 2019
T4144 Income Tax Guide for Electing Under Section 216 - 2019

Part XIII – Section 217 is certain Canadian pension income.

Electing under section 217
Line 25600 - Exempt foreign income
Your tax obligations

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Foreign Income