Tip 7 - Have you paid tax to another country as well as Canada?

You must report your entire world income on your Canadian income tax return. However, you may be able to use income tax paid to foreign jurisdictions as a credit against your Canadian taxes payable. Although it is usually better to claim Foreign tax on non-business income as a tax credit, you may also claim it as a deduction.

A foreign tax credit on non-business income is limited to 15% of the foreign income.

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