| Protected B when completed | ||||||||||||||||||||
| Part 4 – Special foreign tax credit* | ||||||||||||||||||||
| (i) | Foreign business income (total business income earned in the foreign country, minus allowable expenses and deductions for the foreign |
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| income) | 1 | |||||||||||||||||||
| Foreign non-business income | ||||||||||||||||||||
| (on which non-business income tax was paid to a foreign country (14)) | + | 2 | ||||||||||||||||||
| Non-taxable part of foreign capital gains included in adjusted taxable | ||||||||||||||||||||
| income (cannot be more than line 23 plus line 24 of Part 1) | 67940 | + | 3 | |||||||||||||||||
| Total foreign income: add lines 1 to 3 (if negative, enter "0") | = | 4 | ||||||||||||||||||
| Applicable rate | x 20.5% | 5 | ||||||||||||||||||
| Foreign income limit for special foreign tax credit: line 4 multiplied | ||||||||||||||||||||
| by the percentage on line 5 (if negative, enter "0"). | = | 6 | ||||||||||||||||||
| (ii) | Total non-business income tax | |||||||||||||||||||
| paid to a foreign country (14) | x 66.6667% = | 7 | ||||||||||||||||||
| Total business income tax paid to a foreign country (15) | + | 8 | ||||||||||||||||||
| Foreign taxes paid for special foreign tax credit: | ||||||||||||||||||||
| line 7 plus line 8 (if negative, enter "0") | = | 9 | ||||||||||||||||||
| Enter whichever is less: amount from line 6 or line 9. | 10 | |||||||||||||||||||
| Enter whichever is more: amount from line 7 of Part 3 or line 10. | Special foreign tax credit | 11 | ||||||||||||||||||
| (14) | Non-business income tax paid to a foreign country* | |||||||||||||||||||
| Total of non-business income or profits tax you paid to that country or to a political subdivision of that country for the year, minus any part of this tax that is deductible under subsection 20(11) or deducted under subsection 20(12) of the ITA. Non-business income tax paid to a foreign country does not include tax that can reasonably be attributed to an amount that: |
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| • | any other person or partnership has received, or is entitled to receive from the foreign country | |||||||||||||||||||
| • | relates to taxable capital gains from that country, and you or your spouse or common-law partner claimed a capital gains deduction for that income | |||||||||||||||||||
| • | was deductible as income exempt from tax under a tax treaty between Canada and that country | |||||||||||||||||||
| • | was taxable in the foreign country because you were a citizen of that country, and relates to income from a source within Canada | |||||||||||||||||||
| (15) | Business income tax paid to a foreign country* | |||||||||||||||||||
| Total of business income or profits tax you paid to a country or a political subdivision of a country for the year, if you were a resident of Quebec, multiply this amount by 55%. It does not include any part of the business income tax that can be reasonably attributed to an amount that any other person or partnership has received or is entitled to receive from a country, or that was payable on income that was exempt from tax under a tax treaty between Canada and that country. |
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| *The Canada Revenue Agency considers that any amount of tax you paid to a foreign government in excess of the amount you had to pay according to a tax treaty is a voluntary contribution and does not qualify as foreign taxes paid. |
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| T691 E (24) | Page 7 of 10 | |||||||||||||||||||