 |
Canada Revenue Agency |
Agence du revenu du Canada |
Protected B when completed | ||||||||||||||
| Provincial or Territorial Foreign Tax Credit | |||||||||||||||||
| Use this form to calculate the foreign non-business income tax credit for 2023, that you can deduct from the income tax payable to the province or territory you resided in at the end of the tax year. |
|||||||||||||||||
| This form does not apply to residents of Quebec. If you are a resident of Manitoba and you must pay minimum tax, you cannot claim a provincial foreign tax credit. |
|||||||||||||||||
| Before you complete this form, calculate your federal foreign tax credit by using Form T2209, Federal Foreign Tax Credits. If the amount of the federal foreign non-business income tax credit you are entitled to deduct is equal to the foreign non-business tax you paid, your provincial or territorial foreign tax credit would be zero. As a result, you do not have to complete this form. |
|||||||||||||||||
| If you paid tax to more than one foreign country, and the total of the non-business income taxes that you paid to all foreign countries was more than $200, do the calculation on a separate form for each country in Canadian dollars. Enter the total on this form. |
|||||||||||||||||
| Country or countries for which you are making this claim: | |||||||||||||||||
| Enter the amount from line 43100 of Form T2209. | 1 | ||||||||||||||||
| Enter the amount from line 3 of Form T2209. | |||||||||||||||||
| If you must pay minimum tax for 2023 and at the end of the year you were a resident of: | |||||||||||||||||
| • British Columbia, enter the amount from line 3 of Form T2209 | |||||||||||||||||
| • Ontario, follow the instructions that apply to your situation: | |||||||||||||||||
| – | If the total non-business income taxes you paid to all foreign countries is $200 or less, calculate the ratio of the amount from line 1 over the sum of the amount on line 1 of this form and the amount on line 88 of Form T691, Alternative Minimum Tax, and enter the product of this ratio and the special foreign tax credit (line 91 of Form T691) on line 2; otherwise |
||||||||||||||||
| – | For each country, calculate the ratio of the amount from line 1 for that country over your total foreign taxes paid for 2023 (for example, the sum of (i) the amount on line 87 of Form T691 divided by 66.6666% and (ii) the amount on line 88 of Form T691), and enter the product of this ratio and the special foreign tax credit (line 91 of Form T691) on line 2 of the sheet for that country |
||||||||||||||||
| • another province or territory, enter on line 2 the part of the special foreign tax credit (line 91 of | |||||||||||||||||
| Form T691) that relates to non-business income taxes you paid to a foreign country for 2023. | – | 2 | |||||||||||||||
| Line 1 minus line 2 | = | 3 | |||||||||||||||
| Net foreign | |||||||||||||||||
| non-business income (1) | Provincial or territorial | = | 4 | ||||||||||||||
| Net income (2) | X | tax otherwise payable (3) | |||||||||||||||
| Enter whichever amount is less: line 3 or line 4. The amount | |||||||||||||||||
| on line 5 should not be more than the amount entered on the line | Provincial or territorial | ||||||||||||||||
| for provincial or territorial tax otherwise payable. | foreign tax credit | 5 | |||||||||||||||
| Enter the total from line 5 (of each form if applicable) on the line for the provincial or territorial foreign tax credit of Form 428. If you have to pay tax to more than one jurisdiction, enter the amount from line 5 on the applicable line in Part 4, Section 428MJ of Form T2203, Provincial and Territorial Taxes for Multiple Jurisdictions, only for the province or territory you resided in on the last day of the tax year. |
|||||||||||||||||
| T2036 E (23) | (Ce formulaire est disponible en français.) | Page 1 of 2 | |||||||||||||||