Tip 4 - Do you have to pay tax on foreign income?

Canada has international tax treaties with many countries. These tax treaties generally include the provision for the sharing of income and tax information between the tax authorities of each country. Just because your income is earned and left in a foreign country does not mean Canadian tax authorities will not become aware of it, nor does it mean you do not have to pay tax on.

You may be able to use income tax paid to foreign jurisdictions as a credit against your Canadian taxes payable.

If you are required to file a personal tax return for more than one country, you may have to prepare all of your returns at the same time to determine your foreign income and taxes.

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