Line 121 - Foreign interest and dividends

If you receive interest or dividend income from another country, you have to report this income in Canadian dollars. Use the Bank of Canada exchange rate that was in effect on the day you received the income. If you received the income 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.

Report on line 121 any foreign dividends you received. Foreign dividends do not qualify for the dividend tax credit.

If you paid foreign taxes on your interest or dividend income, 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.

If you are a shareholder in a foreign corporation and received certain shares in another foreign corporation, you may not have to include any amount in income for receiving shares. For more information, get Form T1135, Foreign Income Verification Statement, or contact us.

Completing your tax return

Enter on line 121, the total interest and investment income.

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• Form T1135, Foreign Income Verification Statement
• Form T2036, Provincial or Territorial Foreign Tax Credit

Related topics

• Line 221 - Carrying charges and interest expenses
• Federal foreign tax credit