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 the CRA asks to see them at a later date.
Filing a paper return
Attach your completed Form T2209, Federal Foreign Tax Credits and documents such as official receipts, that show the foreign taxes you paid and a note showing your calculations. 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 any of your documents are in a foreign language, the CRA needs a copy of the original documents written in the foreign language with an acceptable English or French translation.
To be acceptable, the signatory’s name has to be printed, in the Latin alphabet, and the translation has to meet one of the following conditions:
- be certified by an official with the authority to administer an oath or solemn declaration (commissioner of oaths, notary public, or lawyer) unless it was done by a translator who is a member in good standing of one of the provincial or territorial organizations of translators and interpreters of Canada
- have the seal and signature of an official from the foreign country’s embassy, high commission, or consulate confirming it is a true translation
Forms and publications
- Income Tax 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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