Foreign employment, pension, or investment income (T2209 & TP-772-V)

If you earned foreign non-business income (from employment, interest and/or dividends, or pension) or paid tax on this income to a foreign government, you can avoid paying full tax to both Canada and the source country by claiming the foreign tax credit (provided Canada has a tax treaty with this country).

To claim this tax credit, you must have been a resident of Canada on:

  • December 31 of the current tax year
  • The last day of your residence in Canada (if you stopped living in Canada during the tax year) or
  • The date on which you passed away

Your payment of income tax qualifies for the tax credit if:

  • The payment was made to the government of a foreign country or to the government of a state, province or other political subdivision of a foreign country
  • It isn’t conditional on the availability of a foreign tax credit in Canada or a deduction for a dividend received from a foreign affiliate and
  • It is an income or profits tax

Generally, the foreign tax credit you can claim for each foreign country is the lower of the following amounts:

  • The foreign income tax you paid or
  • The tax otherwise due in Canada on your net income from that country


  • Be sure to keep all your supporting documents in case the Canada Revenue Agency (CRA) or Revenu Québec asks to see them. If you paid foreign income tax in the U.S., you’ll want to retain a copy of your W-2 information slip, your Form 1040 from the Internal Revenue Service (IRS), and any other documents supporting your claim.
  • If you have foreign employment, pension, or investment income from more than three countries, you won’t be able to NETFILE your return. Instead, you’ll need to print and mail-in the paper version of your return to the CRA and/or Revenu Québec.