Line 405 - Federal foreign tax credit

This credit is for foreign income or profits taxes you paid on income you received from outside Canada and reported on your Canadian tax return.

Foreign income and foreign taxes must be converted to Canadian dollars. Use the Bank of Canada exchange rate that was in effect on the day you received the pension. If you received the pension at different times during the year, use the average annual exchange rate. The average monthly rate as well as the daily rate are available by visiting the Bank of Canada Web site.

Note
You may have deducted an amount on line 256 for income that is not taxable in Canada under a tax treaty. In that case, do not include that income, or any tax withheld from it, in your foreign tax credit calculation.

Completing your tax return

Complete Form T2209, Federal Foreign Tax Credits, and enter the amount from line 12 on line 405 of your Schedule 1.

Complete the tax and credit form for your province or territory of residence as the provincial or territorial credit is calculated separately.

Supporting documents

Filing electronically
Keep all your documents in case we ask to see them at a later date.

Filing a paper return
Attach your completed Form T2209, Federal Foreign Tax Credits and documents that show the foreign taxes you paid. If you paid taxes to the United States, attach your W-2 information slip, U.S. 1040 return, and any other supporting documents that apply.

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• Form T2036, Provincial or Territorial Foreign Tax Credit
• Form T2209, Federal Foreign Tax Credits
• IT-270, Foreign Tax Credit
• IT-506, Foreign Income Taxes as a Deduction From Income
• ITNEWS-31R2, Income Tax - Technical News, No. 31R2

Related topics

• Line 232 - Other deductions
• Line 256 - Additional deductions