Note: Line 10400 was line 104 before tax year 2019.

Foreign employment income is income earned outside Canada from a foreign employer.

Report your foreign employment income in Canadian dollars. In general, the foreign currency amount should be converted using the Bank of Canada exchange rate in effect on the day it arises. Alternatively, the CRA will also generally accept a rate for that day from another source if that source meets all of the following conditions.

The source is:

• widely available
• verifiable
• published by an independent provider on an ongoing basis
• recognized by the market
• used in accordance with well-accepted business principles
• used to prepare financial statements, if any
• used regularly from year to year

If the amount was paid at various times in the year, you can use the annual average exchange rate.

Do not reduce your foreign income by the amount of tax that the foreign country withheld. Instead, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes. See line 40500.

Completing your tax return

Report on line 10400 of your return your foreign employment income in Canadian dollars.

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-F4-C1, Income Tax Reporting Currency
• Income Tax Folio S5-F2-C1, Foreign Tax Credit

Related topics

• Line 20700 – Registered pension plan (RPP) deduction
• Line 40500 – Federal foreign tax credit