Foreign Income from three countries

Question

2295 viewsApril 28, 2020Personal Tax

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Sampath Kumar Bhashetty (anonymous) Posted April 26, 2020

Hello Allan Madan,
Hope you are doing great. I was doing my tax returns for 2019 in Canada and had one question regarding the Foreign Income. So for the 2019 year I earned my salary for Jan and Feb 2019 in US and left for good to India due to visa issues. And from March to Sep, I have earned my salary in India and came to Canada on Sep 8th and earned my salary income for Sep to Dec 2019.
I have already applied my Tax returns for US and received the tax returns. Haven’t done the tax returns in India. Now am trying to do my tax returns in Canada but since I have already paid taxes for the salary I have earned in US and India, do I need to enter the same for Canada tax returns. Please advice.

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score 0 · Answer 1 · 2020-04-28T16:10:49+00:00

If you are a tax resident of Canada, then you will be required to report your global income to the CRA and pay Canadian taxes. You can claim a foreign tax credit on your Canadian tax return for foreign taxes paid.

First, you should make a determination of your residency status. Your residency status with Canada depends on the nature of your primary and secondary ties with Canada. Second, make reference to the relevant tax treaty between Canada and your home country (India) to determine if you are a resident of Canada or India. The tax treaty overrides Canadian domestic legislation.

Foreign Income from three countries

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