Foreign income and Form T1135

Canadian residents are taxed on worldwide income. Convert it to Canadian dollars and report it, even if tax was already paid elsewhere.

If another country taxed the income, you may be able to claim a foreign tax credit to reduce double taxation.

Form T1135

If the total cost of your specified foreign property was more than $100,000 at any time in the year, you must file Form T1135. This can include foreign shares, bank accounts and rental property.

Shares of foreign companies held in a Canadian non-registered brokerage account can count. Personal-use property, such as a vacation home used only by you, does not.

The penalty for filing late is generally $25 a day, up to $2,500, and can apply even if no tax is owing.