Line 115 - Pensions from a foreign country

If you received a pension from another country, you have to report the total amount on your return in 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.

Attach a note to your paper return to tell us what type of pension you received and the country it came from. Sometimes, the amount is not considered pension income and you will report it at a different place on your return.

If there is a tax treaty with the country your pension is from, you can claim a deduction on line 256, for the part of your foreign pension income that is tax-free in Canada.

If you paid foreign taxes on your pension, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes (see Line 405). Do not subtract the taxes from your income when you report it.

Two common types of foreign pension are:

• United States individual retirement arrangement (IRA); and
• United States Social Security.

Questions and answers

I have a pension from a foreign country. They withhold the taxes. Can I get the tax back?

I started receiving a social security pension from Germany last year. How do I calculate the tax-free portion?

My aunt received a pension from Italy for my late uncle who spent all his working life in the Italian armed forces. How does she report the income? My aunt's income including the pension is about $30,000. The rest of her income is investment income of $15,000.

Completing your tax return

Enter on line 115, your total foreign pension (in Canadian dollars).

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• IT-499, Superannuation or Pension Benefits
• IT-506, Foreign Income Taxes as a Deduction from Income

Related topics

• Line 314 - Pension income amount
• Federal foreign tax credit
• Provincial or territorial foreign tax credit
• Seniors
• Tax treaties