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.

Note

If you deducted an amount on line 256 for income that is not taxable in Canada under a tax treaty, do not report 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, U.S tax account transcript, and any other supporting documents that apply.

Documents in a foreign language
If you are submitting documents in a foreign language, you will need to provide a copy of the original documents and 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.

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