Taxes in Bank interest in egypt

Question

2067 viewsJuly 9, 2019Personal Tax

0

Ahmed Maklad (anonymous) Posted July 9, 2019

Hello,

I am a newcomer to Canada. I plan to have GICs in my home country Egypt as the interest rate is higher than Canada. I understood from the tax treaty between Canada and Egypt that the taxes I need to pay back in Canada is capped to maximum of 15% of the interest income I receive in Egypt, is that correct statement? In other words, I will not pay taxes in Canada based on my marginal tax rate rather it will be according to the treaty clauses Article 11 point 2.
https://www.treaty-accord.gc.ca/text-texte.aspx?lang=eng&id=102252

1 Answer

score 0 · Answer 1 · 2019-07-09T14:48:34+00:00

According to the treaty, the tax deducted from the interest payments made by the Egyptian payer (e.g. bank) to the resident of Canada cannot exceed 15%. However, as a resident of Canada, you are taxable on your global income and you will be taxed at your marginal Canadian tax rate. You can claim a foreign tax credit on your Canadian tax return for the foreign tax deducted.

Taxes in Bank interest in egypt

1 Answer

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