Canada foreign income tax credit

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northmount183
Posts: 8
Joined: Fri Mar 12, 2021 12:11 am

Canada foreign income tax credit

Post by northmount183 »

Based on my understanding, No matter how much foreign income tax you pay, as a tax payer in Canada, the maximum federal foreign tax credit is $39,462; and the maximum provincial foreign tax credit is $23,851. Is it correct? Thanks.
northmount183
Posts: 8
Joined: Fri Mar 12, 2021 12:11 am

Re: Canada foreign income tax credit

Post by northmount183 »

Sorry, the previous post was confusing, I think my question is : is there a maximum limit for the foreign tax credit? Or up to the amount which is less between the foreign tax paid on the foreign income or the Canada tax someone should pay on the foreign income thank you
nelsona
Posts: 16935
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canada foreign income tax credit

Post by nelsona »

The maximum credit CRA and the province will allow is the prorated amount of CRA or provincial tax you would owe on that foreign income. There is no numerical limit.
Your software will handle this.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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