Line 405 - Federal foreign tax credit
You may be able to claim this credit if you paid foreign taxes 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 in effect on the day you received these amounts. If you received a monthly pension or multiple payments at different times during the year, use the average annual exchange rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada website.
Completing your tax return
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, U.S tax account transcript, and any other supporting documents that apply. If you are submitting documents in a foreign language, you will need to provide a copy of the original documents and a certified English or French translation.
The translation has to be certified by an official who has the authority to administer an oath or solemn declaration (commissioner of oaths, notary public, or lawyer) unless it has been completed by a translator who is a certified member in good standing of one of the provincial or territorial organizations of translators and interpreters of Canada. The signatory's name has to be printed in the Latin alphabet.
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
- Income Tax Folio S5-F2-C1, Foreign Tax Credit
- Interpretation Bulletin IT-506, Foreign Income Taxes as a Deduction From Income
- ITNEWS-31R2, Income Tax - Technical News, No. 31R2
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