DT Max - Foreign income

Foreign income

Foreign-Inc

Use the keyword Foreign-Inc to select the type of foreign income for which you will be entering data.

DT Max calculate separately the foreign tax credit for:

Foreign non-business-income tax; and
Foreign business-income tax.

Furthermore, a separate foreign tax credit calculation is required for each foreign country with respect to foreign business-income tax paid. In addition, a separate calculation is required for each country if the amount of for non-business-income tax exceeds $200.

When you enter client data using Foreign-Inc, DT Max will calculate the following deductions and tax credits:

Deduction pursuant to subsection 20(11)
Deduction pursuant to subsection 20(12)
Quebec foreign employment deduction
Federal foreign tax credits (T2209)
Provincial or territorial foreign tax credit (T2036)
Quebec foreign tax credit for foreign non business income (TP-772)
Quebec foreign tax credit for foreign business income (TP-772)

In order for the calculations to be completed properly, you must enter the type of foreign income in Foreign-Inc, and the country of reference in Country.fi .

You can override the federal non business foreign tax credit (line 3 of T2209) with the keyword Foreign-OV . Similarly, you can also override the federal business foreign tax credit (line 9 of T2209) with the keyword Foreign-OV. These overrides will be carried through to the provincial foreign tax credit calculation (T2036 or TP-772 for Quebec).

The foreign tax credit is for foreign income or profits taxes you paid on income you received from outside Canada and reported on your Canadian return. Tax treaties with other countries may affect whether you are eligible for this credit.

If you paid tax to more than one foreign country, and the total non-business income tax you paid to all foreign countries is more than $200, you have to selected different country to do a separate calculation for each country for which you claim a foreign tax credit.

You may have earned foreign income in your Tax-Free Savings Account (TFSA). In that case, do not include that income in your "Net foreign non-business income". Also, do not include any foreign tax withheld from it in your "Non-business income tax paid to a foreign country".

In very rare circumstances, you may want to override the overall federal foreign tax credit ( ForTaxCrOVF) and the provincial foreign tax credit ( ForTaxCrOVP).

Foreign type of income 20(11) 20(12) 126(1) 126(2)

Dividends Yes (1) Yes (2) Yes (3) No

Interest Yes (1) Yes (2) Yes (3) No

Royalties Yes (1) Yes (2) Yes (3) No

Employment No No (4) Yes No

Rental No Yes Yes No

Business No No (5) No Yes

Pension No No Yes (6) No

Capital gains No No Yes (6) No

Notes
(1) Yes, if income derives from a country with no tax treaty with Canada, or from a country with a tax treaty that provides for more than 15%.

(2) Yes, only for the portion that does not exceed 15% (the excess being deductible under 20(11)). As explained in IT-506 par. no 3, the net foreign tax amount after application of subsection 20(11) deduction, if such a deduction is available (claimed or not), can be deducted under subsection 20(12).

(3) Alternatively, the foreign tax paid can be saved totally or partially and used in the calculation of the foreign tax credit allowable under subsection 126(1). As mentioned in IT-506 par. no 8, the foreign non-business-income tax paid must be reduced by any amount deductible under 20(11) (even if not deducted at line 23200) and by any amount deducted under subsection 20(12). Also, the net foreign non-business-income used as numerator in that credit calculation must be reduced by any amount really deducted at line 23200 under subsection 20(11) and 20(12). Note that the net income from all sources (line 23600) used as denominator in that tax credit calculation automatically takes in account those amounts deducted on line 23200.

(4) No, as mentioned in IT-506 par. no 9, subsection 8(2) prevent any other deduction than section 8 deductions to be applied against employment income. Note that the foreign tax paid on employment income can be used in the calculation of the foreign tax credit allowable under subsection 126(1).
(5) Generally, no business income can give rise to a deduction under subsection 20(12). It usually generates a foreign business income tax credit under subsection 126(2) calculated on form T2209 and claimed on the T1 General. IT-270R3 par. no 7 and 9, and IT-506 par. no 9 and 1 0 give some examples of foreign business income tax, derived from a business, that can be considered as being a non-business income tax. In these situations, it can be claimed as a deduction under 20(12), or as a credit for non-business income tax under subsection 126(1) that is calculated on form T2209 or directly on the return.

(6) Only a credit for non-business income tax under subsection 126(1) can be claimed for foreign tax paid on pension income and capital gains. Those 2 types of income are not considered deriving from property or business for which deductions under section 20 are applicable.

The following options are applicable for the keyword Foreign-Inc.

Foreign income - dividends

Choose this option to enter foreign source dividend income or the taxes paid on such income that may be reported on a T3, a T5 or a T5013.
Enter the amount of foreign dividend income eligible for the 20(11) deduction that may be reported in box 25 of the T3, box 15 of the T5 or box 135 of the T5013.
DT Max will report this amount on line 121 of the federal income tax return and on line 13000 of the Quebec income tax return.
Enter the amount of taxes paid on the foreign dividend income that may be reported in box 16 of the T5, box 34 of the T3, box 39 of the T4PS and in the "Details" section of the T5013 regarding box 171.
DT Max will also determine the foreign tax credit and deduction available to the taxpayer.

Foreign income - interest

Choose this option to enter foreign source interest income or the taxes paid on such income that may be reported on a T3, a T5 or a T5013.
Enter the amount of foreign source interest income eligible for the 20(11) deduction that may be reported in box 25 of the T3, box 15 of the T5 or the T5013.
DT Max will report this amount on line 12100 of the federal income tax return and on line 13000 of the Quebec income tax return.
Enter the amount of foreign taxes paid on the foreign interest that may be reported in box 16 of the T5, box 34 of the T3, box 39 of the T4PS and in the "Details" section of the T5013 regarding box 171.
DT Max will also determine the foreign tax credit and deduction available to the taxpayer.

Foreign income - employment

Foreign employment income will be added to Canadian employment income and reported on line 10100 of the income tax return.

Foreign income - rental

Choose this option to enter foreign source rental income or the taxes paid on such income as reported on a T5013.
Enter the amount of foreign net rental income (loss) indicated in box 111 of the T5013. This amount is already included in box 110 of the T5013.
This entry is required to enable DT Max to determine the foreign tax credit and deduction available to the taxpayer.
Enter the amount of foreign taxes paid on the foreign rental income that is reported in the "Details" section of the T5013 regarding box 171.

Foreign income - business

Choose this option to enter foreign source business income or the taxes paid on such income as reported on a T3 or a T5013.
Enter the amount of foreign business income as indicated in box 24 of the T3 and on the T5013.
The amount from box 24 of the T3 will be reported on line 13500 of the federal return.
The amount from the T5013 is already included in box 116 of the T5013.
Enter the amount of foreign business income tax paid as indicated in box 33 of the T3 and in box 172 of the T5013.
These entries are required to enable DT Max to determine the foreign tax credit and deduction available to the taxpayer.

Foreign income - professional

Foreign income - commission

Foreign income - farming

Foreign income - fishing

Foreign income - pension

Choose this option to enter the foreign pension income eligible for the pension income deduction. The total amount of the pension must be entered. DT Max assumes that the pension amount is eligible for the deduction. If it is not, the amount eligible for the pension deduction from all pensions must be calculated and entered as Pens-Ded-OV.

Foreign income - capital gains

Choose this option to enter foreign source capital gains (losses) or the taxes paid on such gains as reported on a T4PS or a T5013.
Enter the amount of foreign capital gains that may be reported in box 38 of the T4PS or box 156 of the T5013.
The amount of foreign capital gains from box 156 of the T5013 is already included in box 151. Hence, this amount is entered with both Cap-Gains and Foreign-Inc, but is included in income only once.
The amount in box 38 of the T4PS slip is already included in box 34 of the T4PS. Hence, this amount is entered with both the Cap-Gains and Foreign-Inc keywords, but will only be included in income once.
Enter the amount of taxes paid on the foreign capital gains that may be reported in box 39 of the T4PS or in box 171 of the T5013.
The entries are required to enable DT Max to determine the foreign tax credit and deduction available to the taxpayer.

Foreign income - support payments received

Foreign income - other

Choose this option to enter other foreign source income or the taxes paid on such income that is reported on a T4PS.
Enter the amount of other foreign source income such as foreign unemployment compensations that may be reported in box 37 of the T4PS.
The amount in box 37 of the T4PS slip is already included in box 35 (other income) of the T4PS. Hence, this amount is entered with both the Other-Income.t and Foreign-Inc keywords, but will only be included in income once.
The entry in Foreign-Inc will be used to determine the foreign tax credit and deduction available.
This amount will be reported as other income on line 10400 of the T1 and on line 101 or 104 of the TP1.
Enter the amount of taxes paid on the other foreign source income that may be reported in box 39 of the T4PS.

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 10400 - Other employment income
Line 11500 - Other pensions or superannuation
Line 12100 - Interest and other investment income
Line 12600 - Rental income - Net
Line 13500 - Business income - Net
Line 13700 - Professional income - Net
Line 13900 - Commission income - Net
Line 14100 - Farming income - Net
Line 14300 - Fishing income - Net

See the CRA's general income tax guide:
Line 10400 - Other employment income
Line 11500 - Other pensions and superannuation
Line 12100 - Interest and other investment income
Line 12600 - Rental income
Lines 13499 to 14300 - Self-employment income

Country.fi

Using Country.fi, select a country from the list of the country of origin of foreign income on the following basis:

Although DT Max considers the United States to be the default country and automatically converts US currency to Canadian currency, a foreign country, including the United States, should be selected to ensure the foreign tax credit calculation is performed correctly.

Note that the deduction pursuant to subsection 20(11) is usually not available for income from countries that have tax treaties with Canada.

DT Max will calculate the foreign tax credits and deductions on a country-by-country basis, and calculate the foreign tax credits and deductions for each country. Countries that have signed a tax treaty with Canada are marked with an asterisk (*) in the drop-down menu.

Descript.fi

Enter a brief description of the source of the foreign income.

Exchange.fi

Use Exchange.fi to enter the exchange rate at which income is to be converted to Canadian dollars. If you entered the amount in Canadian dollars or if you are using DT Max to convert US currency automatically, no entry is required here.

When no entry is made, DT Max will either use the US conversion rate for Country.fi = United States or assume that the entries are made in Canadian dollars. If you use US-Convert and have entered an amount in Canadian dollars, enter Exchange.fi at 1.

Click here for the CRA's records of average exchange rates.

The following options are applicable for the keyword Exchange.fi.

United States (dollar)[2023: 1.3497] (Annual)

United States (dollar)[2023: 1.3422] (January)

United States (dollar)[2023: 1.3450] (February)

United States (dollar)[2023: 1.3682] (March)

United States (dollar)[2023: 1.3485] (April)

United States (dollar)[2023: 1.3520] (May)

United States (dollar)[2023: 1.3288] (June)

United States (dollar)[2023: 1.3215] (July)

United States (dollar)[2023: 1.3485] (August)

United States (dollar)[2023: 1.3535] (September)

United States (dollar)[2023: 1.3717] (October)

United States (dollar)[2023: 1.3709] (November)

United States (dollar)[2023: 1.3431] (December)

Argentina (peso)

Australia (dollar)[2023: 0.8967]

Bahamas (dollar)

Brazil (real)[2023: 0.2704]

Chile (peso)

Chine (renminbi)[2023: 0.1907]

Colombia (peso)

Communauté Financière Africaine (franc)

Comptoirs Français du Pacifique (franc)

Croatia (kuna)

Czech Republic (koruna)

Denmark (krone)

East Caribbean (dollar)

Europe (Euro)[2023: 1.4597]

Fiji (dollar)

Ghana (cedi)

Guatemala (quetzal)

Honduras (lempira)

Hong Kong (dollar)[2023: 0.1724]

Hungary (forint)

Iceland (krona)

India (rupee)[2023: 0.01635]

Indonesia (rupiah)[2023: 0.000089]

Israel (new shekel)

Jamaica (dollar)

Japan (yen)[2023: 0.009630]

Malaysia (ringgit)

Mexico (peso)[2023: 0.07618]

Morocco (dirham)

Myanmar (Burma) (kyat)

Netherlands Antilles (guilder)

New Zealand (dollar)[2023: 0.8287]

Norway (krone)[2023: 0.1278]

Pakistan (rupee)

Panama (balboa)

Peru (new sol)[2023: 0.3606]

Philippines (peso)

Poland (zloty)

Romania (nouveau leu)

Russia (ruble)[2023: 0.01600]

Serbia (dinar)

Singapore (dollar)[2023: 1.0051]

South Africa (rand)[2023: 0.07323]

South Korea (won)[2023: 0.001033]

Sri Lanka (rupee)

Sweden (krona)[2023: 0.1273]

Switzerland (franc)[2023: 1.5024]

Taiwan (new dollar)[2023: 0.04334]

Thailand (baht)

Trinidad and Tobago (dollar)

Tunisia (dinar)

Turkey (lira)[2023: 0.05860]

United Arab Emirates (riyal)[2023: 0.3597]

United Kingdom (pound sterling)[2023: 1.6784]

Venezuela (bolivar fuerte)

Vietnam (dong)

Other (specify)

Pension-Type

Use Pension-Type to select the type of pension income received from a foreign country.

The following options are applicable for the keyword Pension-Type.

US social security benefits (15%)

Amount of U.S. social security pension. DT Max will include this amount on line 11500 of the federal income tax return and on line 122 of the Quebec return. DT Max will claim on line 25600 of the federal income tax return and on line 297 (code 12) of the Quebec return a deduction equal to 15% of the U.S. Social Security benefits reported as income on line 11500.
Under the Canada-U.S. tax treaty, you can claim a deduction equal to 15% of the U.S. Social Security benefits, including U.S. Medicare premiums, you included in your income on line 11500.
Since 1998, these benefits are not taxable in United States and there are more American tax withheld at source. No foreign tax credit can be claimed.

US social security benefits (50%)

Amount of U.S. social security pension. DT Max will include this amount on line 11500 of the federal income tax return and on line 122 of the Quebec return. DT Max will claim on line 25600 of the federal income tax return and on line 297 (code 12) of the Quebec return a deduction equal to 50% of the U.S. Social Security benefits reported as income on line 11500.
If you have been a resident of Canada and have received U.S. Social Security benefits continuously during the period starting before January 1, 1996, and ending in 2023, you can claim a deduction equal to 50% of the U.S. Social Security benefits, received in 2023.
Since 1998, these benefits are not taxable in United States and there are more American tax withheld at source. No foreign tax credit can be claimed.
This 50% deduction also applies to you if you are receiving benefits related to a deceased individual and if you meet all the following conditions:

the deceased person was your spouse or common-law partner immediately before their death;

the deceased person had, continuously during a period starting before 1996 and ending immediately before the person's death, been a resident of Canada and received benefits to which paragraph 5 of Article XVIII of the Canada-U.S. Tax Treaty applied; and

you have, continuously during a period starting at the person's time of death and ending in 2023, been a resident of Canada and received such benefits.

Other foreign pension benefits elig. for pension inc. amt.

Any pension of a type not specified here and eligible for the pension income amount. DT Max will include this amount on line 11500 of the federal income tax return and on line 122 of the Quebec return.
This option includes any amount of foreign pension income that is tax-free in Canada because of a tax treaty. In this case, you have to indicate the amount that is tax-free using the keyword Tax-Treaty .

Foreign annuities not eligible for the pension inc. amount

Any pension of a type not specified here and not eligible for the pension income amount. DT Max will include this amount on line 11500 of the federal income tax return and on line 154 (code 15) of the Quebec return.
This option includes any amount of foreign pension income that is tax-free in Canada because of a tax treaty. In this case, you have to indicate the amount that is tax-free using the keyword Tax-Treaty .

Foreign lump sum pension benefits

A lump sum foreign pension income. This amount is considered eligible for transfer into a Registered Retirement Savings Plan. DT Max will include this amount on line 13000 of the federal income tax return and on line 154 (code 15) of the Quebec return.

US IRA

An amount received from a U.S. Individual Retirement Account. This amount is considered eligible for transfer into a Registered Retirement Savings Plan. DT Max will include this amount on line 11500 of the federal income tax return and on line 122 of the Quebec return.

T4-Income.fi

Enter the amount of employment income indicated on the T4 slip that is earned outside of Canada with the keyword T4-Income.fi . This could be all or a portion of the income amount shown on the T4 slip.

This entry will not be reported as income on the tax return but is required if you have paid foreign taxes on this income and want to claim a foreign tax credit.

Enter the foreign taxes with the keyword Tax-Paid .

Any employment expenses incurred during the employment outside of Canada should be entered with the keyword . .

Note that the employment income reported on the T4 slip should be entered with the keyword T4 and is reported on line 10100. Even if the employment income is earned outside of Canada, a Canadian employer is generally responsible for reporting the employee's earnings on a T4 slip and deducting income tax, CPP and employment insurance contributions from the amounts paid to the employee, if paid from the employer's place of business in Canada.

Foreign employment income that is not reported on a T4 slip is generally income from a foreign employer and is not subject to CPP/QPP and employment insurance contributions. Enter the amount with the keyword Income.fi . This amount will be reported on line 10400 of the income tax return.

For 1996 and subsequent years, Revenu Quebec requires that that employment income earned outside of Quebec be reported on line 101 and that a box be ticked. Hence, foreign employment income entered with the keyword Income.fi will now be reported on line 101 of the Quebec income tax return but will continue to be reported on line 10400 of the federal income return. Use [Alt-J] to enter different values for other jurisdictions.

Income.fi

Use Income.fi to enter the total foreign income received. Use [Alt-J] to enter different values for other jurisdictions.

Transfer.fi

Use the keyword Transfer.fi to indirectly transfer to a RRSP any US IRA or other foreign pension amounts.

The following options are applicable for the keyword Transfer.fi.

Portion - indirect transfer to RRSP

Enter the amount of foreign pension income from (U.S.) IRA or foreign retirement income that has been indirectly transferred to your RRSP.

Portion - indirect transfer to RPP

Enter the amount of foreign pension income from (U.S.) IRA or foreign retirement income that has been indirectly transferred to your RPP.

Gross-Inc.fi

Enter the gross foreign income earned from a business or rental property.

Net-Income.f

Use Net-Income.f to enter the net foreign business income earned. DT Max will not enter this amount automatically.

Net-Inc-Info

If you have foreign taxes paid on foreign business income that you entered in the Business group, you must also enter the net income of that business in the Foreign-Inc group using the keyword Net-Inc-Info, and the related foreign taxes paid.

The entry in Net-Inc-Info will not be reported as income on the tax return. It will be used to determine the deductible foreign business tax credit as per the T2209 and TP-772 (Quebec).

CapGainType.fi

Use CapGainType.fi to enter the specific type of capital gain. Clicking on this keyword will open the capital gains group. Enter all the information you have to generate correct calculations and to produce the appropriate schedules and forms relating to capital gains, losses and deductions.

The following options are applicable for the keyword CapGainType.fi.

Stock, mutual funds & other non depreciable property

Real estate & other depreciable property

Bonds, debentures, promissory notes

Other mortgage foreclosures / repossessions

Personal use property

Listed personal property (LPP)

Capital gain from T-slips

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12700 - Taxable capital gains (Schedule 3)

See the CRA's general income tax guide:
Line 12700 - Taxable capital gains

#Shares.fi

Enter the number of shares of stocks sold with the keyword #SHARES.FI .

Type.fi

Choose the type of capital property.

The following options are applicable for the keyword Type.fi.

Land

Building

Farm property to child (excl. QFP)

Stripped bonds

Stripped Coupons are interest payment coupons detached from government bonds. Residuals are the bonds without their interest coupons. Both are sold as individual investments known as "Strips". Strips are always sold at a discount and mature at face value. The longer the term to maturity, the deeper the discount. The difference between the purchase price and the face value is your interest income.

Treasury bills

Treasury bills (T-bills) are very safe investments issued by the federal government and some provinces. These investments are sold at a lower price than their price at maturity. The difference between the purchase price and the selling price represents your return. Although the return on this category of investment is a capital gain, it is considered to be interest income for tax purposes and is therefore taxable at 100%.

Foreign exchange

Foreign exchange gains or losses from capital transactions in foreign currencies are considered to be capital gains or losses. However, you only have to report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less:

Certified ecological sensitive land

Other depreciable property

Other

Date-Acquis.fi

Use Date-Acquis.fi to enter the date of acquisition of the capital property sold. This is relevant for all capital gains or losses.

Date-Disp.fi

Use Date-Disp.fi to enter the date of disposition of the capital property sold. This is relevant for all capital gains or losses.

Date-Maturity.fi

Use Date-Maturity.fi to enter the maturity date of bonds.

Proceeds.fi

The amount received in payment for the capital property disposed of is entered as Proceeds.fi of the capital property disposition. These are the amounts to be printed on schedule 3 of the income tax return (Quebec Schedule G).

ACB.fi

Use ACB.fi to enter the ACB (adjusted cost base) of a capital property disposition.

The ACB is usually the cost of a property plus any expenses to acquire it, such as commissions and legal fees. The cost of a capital property is its actual or deemed cost, depending on the type of property and how it was acquired. It also includes capital expenditures, such as the cost of additions and improvements to the property. Current expenses, such as maintenance and repair costs, cannot be added to the cost base of a property.

Expenses.fi

Use Expenses.fi to enter the expenses related to a capital property disposition.

Outlays and expenses are amounts that are incurred to sell a capital property. They will be deducted from the proceeds of disposition when calculating your capital gain or loss. These types of expenses include fixing-up expenses, finders' fees, commissions, brokers' fees, surveyors' fees, legal fees, transfer taxes, and advertising costs.

Amount.fi

Use Amount.fi to enter the total amount of capital gains from the T-slip. This is the total capital gain, which reflects 100% of the gain. DT Max will calculate the taxable amount.

Province-Terr.fi

Enter the province or territory of the property.

Face-Value.fi

Use Face-Value.fi to enter the face value of the bonds.

Reserves.fi

Use Reserves.fi to enter the amount of the capital gains reserve for the current year in respect to that particular capital disposition.

DT Max will carry forward the amount to be brought into income in future years. It is the tax preparer who must decide when and how much of the reserves to bring into income (see Cap-Reserves ).

The following options are applicable for the keyword Reserves.fi.

Reserve on disposition

Reserve on disposition of property to child

ACB-Exchange.fi

Use this keyword to indicate the exchange rate applicable to the adjusted cost base. Enter this rate only if the adjusted cost base is expressed in foreign currency.

Click here for the CRA's records of average exchange rates.

The following options are applicable for the keyword ACB-Exchange.fi.

United States (dollar)[2023: 1.3497] (Annual)

United States (dollar)[2023: 1.3422] (January)

United States (dollar)[2023: 1.3450] (February)

United States (dollar)[2023: 1.3682] (March)

United States (dollar)[2023: 1.3485] (April)

United States (dollar)[2023: 1.3520] (May)

United States (dollar)[2023: 1.3288] (June)

United States (dollar)[2023: 1.3215] (July)

United States (dollar)[2023: 1.3485] (August)

United States (dollar)[2023: 1.3535] (September)

United States (dollar)[2023: 1.3717] (October)

United States (dollar)[2023: 1.3709] (November)

United States (dollar)[2023: 1.3431] (December)

Argentina (peso)

Australia (dollar)[2023: 0.8967]

Bahamas (dollar)

Brazil (real)[2023: 0.2704]

Chile (peso)

Chine (renminbi)[2023: 0.1907]

Colombia (peso)

Communauté Financière Africaine (franc)

Comptoirs Français du Pacifique (franc)

Croatia (kuna)

Czech Republic (koruna)

Denmark (krone)

East Caribbean (dollar)

Europe (Euro)[2023: 1.4597]

Fiji (dollar)

Ghana (cedi)

Guatemala (quetzal)

Honduras (lempira)

Hong Kong (dollar)[2023: 0.1724]

Hungary (forint)

Iceland (krona)

India (rupee)[2023: 0.01635]

Indonesia (rupiah)[2023: 0.000089]

Israel (new shekel)

Jamaica (dollar)

Japan (yen)[2023: 0.009630]

Malaysia (ringgit)

Mexico (peso)[2023: 0.07618]

Morocco (dirham)

Myanmar (Burma) (kyat)

Netherlands Antilles (guilder)

New Zealand (dollar)[2023: 0.8287]

Norway (krone)[2023: 0.1278]

Pakistan (rupee)

Panama (balboa)

Peru (new sol)[2023: 0.3606]

Philippines (peso)

Poland (zloty)

Romania (nouveau leu)

Russia (ruble)[2023: 0.01600]

Serbia (dinar)

Singapore (dollar)[2023: 1.0051]

South Africa (rand)[2023: 0.07323]

South Korea (won)[2023: 0.001033]

Sri Lanka (rupee)

Sweden (krona)[2023: 0.1273]

Switzerland (franc)[2023: 1.5024]

Taiwan (new dollar)[2023: 0.04334]

Thailand (baht)

Trinidad and Tobago (dollar)

Tunisia (dinar)

Turkey (lira)[2023: 0.05860]

United Arab Emirates (riyal)[2023: 0.3597]

United Kingdom (pound sterling)[2023: 1.6784]

Venezuela (bolivar fuerte)

Vietnam (dong)

Other (specify)

Exp-Exchange.fi

Use this keyword to indicate the exchange rate applicable to the outlays and expenses relating to capital property dispositions. Enter this rate only if the outlays and expenses relating to capital property dispositions are expressed in foreign currency.

Click here for the CRA's records of average exchange rates.

The following options are applicable for the keyword Exp-Exchange.fi.

United States (dollar)[2023: 1.3497] (Annual)

United States (dollar)[2023: 1.3422] (January)

United States (dollar)[2023: 1.3450] (February)

United States (dollar)[2023: 1.3682] (March)

United States (dollar)[2023: 1.3485] (April)

United States (dollar)[2023: 1.3520] (May)

United States (dollar)[2023: 1.3288] (June)

United States (dollar)[2023: 1.3215] (July)

United States (dollar)[2023: 1.3485] (August)

United States (dollar)[2023: 1.3535] (September)

United States (dollar)[2023: 1.3717] (October)

United States (dollar)[2023: 1.3709] (November)

United States (dollar)[2023: 1.3431] (December)

Argentina (peso)

Australia (dollar)[2023: 0.8967]

Bahamas (dollar)

Brazil (real)[2023: 0.2704]

Chile (peso)

Chine (renminbi)[2023: 0.1907]

Colombia (peso)

Communauté Financière Africaine (franc)

Comptoirs Français du Pacifique (franc)

Croatia (kuna)

Czech Republic (koruna)

Denmark (krone)

East Caribbean (dollar)

Europe (Euro)[2023: 1.4597]

Fiji (dollar)

Ghana (cedi)

Guatemala (quetzal)

Honduras (lempira)

Hong Kong (dollar)[2023: 0.1724]

Hungary (forint)

Iceland (krona)

India (rupee)[2023: 0.01635]

Indonesia (rupiah)[2023: 0.000089]

Israel (new shekel)

Jamaica (dollar)

Japan (yen)[2023: 0.009630]

Malaysia (ringgit)

Mexico (peso)[2023: 0.07618]

Morocco (dirham)

Myanmar (Burma) (kyat)

Netherlands Antilles (guilder)

New Zealand (dollar)[2023: 0.8287]

Norway (krone)[2023: 0.1278]

Pakistan (rupee)

Panama (balboa)

Peru (new sol)[2023: 0.3606]

Philippines (peso)

Poland (zloty)

Romania (nouveau leu)

Russia (ruble)[2023: 0.01600]

Serbia (dinar)

Singapore (dollar)[2023: 1.0051]

South Africa (rand)[2023: 0.07323]

South Korea (won)[2023: 0.001033]

Sri Lanka (rupee)

Sweden (krona)[2023: 0.1273]

Switzerland (franc)[2023: 1.5024]

Taiwan (new dollar)[2023: 0.04334]

Thailand (baht)

Trinidad and Tobago (dollar)

Tunisia (dinar)

Turkey (lira)[2023: 0.05860]

United Arab Emirates (riyal)[2023: 0.3597]

United Kingdom (pound sterling)[2023: 1.6784]

Venezuela (bolivar fuerte)

Vietnam (dong)

Other (specify)

CalcCapGain.fi

Calculate the capital gain and carry the result on Schedule 3.

The following options are applicable for the keyword CalcCapGain.fi.

Calculate capital gain

Do not calculate capital gain

Tax-CapGainOV.fi

This is the taxable capital gain from foreign sources. This entry will allow DT Max to calculate the foreign tax credit.

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 12700 - Taxable capital gains (Schedule 3)

See the CRA's general income tax guide:
Line 12700 - Taxable capital gains

Cap-Gain-Ded

Enter Cap-Gain-Ded and select "Yes" if you are claiming a capital gains deduction for your client.

Employ-Exp.

In this keyword, choose the relevant option and enter the employment deductions related to the overseas employment income prorate based on days if required.

The following options are applicable for the keyword Employ-Exp..

Sales expenses

Travelling expenses

Other (specify)

Tax-Paid

Use Tax-Paid to enter the total foreign tax paid. The T2209 is only produced if foreign tax paid has been entered.

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):

Canada-Tax-Treaty

Use the keyword Canada-Tax-Treaty to specify if the country signed a tax treaty with Canada. If yes, a deduction under 20(11) will not be allowed on taxes withheld that exceed the applicable tax treaty rate. Below is the list of countries with which Canada has signed a tax treaty, according to the Department of Finance Canada's website (Click here) (date modified: August 29, 2019) and for which the deduction 20(11) will not be granted by DT Max:

Tax treaties in force (94)
Algeria
Argentina
Armenia
Australia
Austria
Azerbaijan
Bangladesh
Barbados
Belgium
Brazil
Bulgaria
Cameroon
Chile
China (PRC)
Colombia
Croatia
Cyprus
Czech Republic
Denmark
Dominican Republic
Ecuador
Egypt
Estonia
Finland
France
Gabon
Germany
Greece
Guyana
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Ivory Coast
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Korea, Rep of
Kuwait
Kyrgyzstan
Latvia
Lithuania
Luxembourg
Madagascar
Malaysia
Malta
Mexico
Moldova
Mongolia
Morocco
Netherlands
New Zealand
Nigeria
Norway
Oman
Pakistan
Papua New Guinea
Peru
Philippines
Poland
Portugal
Romania
Russia
Senegal
Serbia
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Taiwan
Tanzania
Thailand
Trinidad & Tobago
Tunisia
Turkey
Ukraine
United Arab Emirates
United Kingdom
United States
Uzbekistan
Venezuela
Vietnam
Zambia
Zimbabwe

Countries that have signed a tax treaty with Canada are marked with an asterisk (*) in the drop-down menu.

Tax-Treaty

Enter the amount to be deducted from total income due to a tax treaty with Canada. Do not enter this keyword in reference to US social security pensions.

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 25600 - Additional deductions

See the CRA's general income tax guide:
Line 25600 - Additional deductions

PA-Foreign

Use PA-Foreign to enter the pension adjustment with respect to foreign income.

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 20600 - Pension adjustment (box 52 on all T4 and box 34 on all T4A slips)

See the CRA's general income tax guide:
Line 20600 - Pension adjustment

Carry-Ch.f

Use Carry-Ch.f to enter carrying charges associated with earning foreign income. This amount will be added to other carrying charges.

The following options are applicable for the keyword Carry-Ch.f.

Management and accounting fees

Fees paid to investment counsellors

Other carrying charges (specify)

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 22100 - Carrying charges and interest expenses

See the CRA's general income tax guide:
Line 22100 - Carrying charges, interest expenses, and other expenses

Add-Deduct.f

Add-Deduct.f Additional deductions (F25600/Q297)

The following options are applicable for the keyword Add-Deduct.f.

Deduction for employees of IFC corporation or partnership

Use this option to enter the deduction for employees of a corporation or partnership operating an international financial centre (IFC) if the deduction is not related to income from a T4.
If the taxpayer was not a resident of Canada immediately before taking up his duties or immediately before the signing of his employment contract, he may be entitled to deduct the income from all sources earned in the year during the period of his employment with a corporation or partnership operating an IFC.
If, in the year, the taxpayer was an employee of a corporation or partnership operating an IFC and held a certificate issued by the ministère des Finances du Québec, then the taxpayer may claim a deduction not exceeding one-third of the remuneration he received in the year from his employer.
DT Max will report this amount on line 297 and code 09 on line 296 of the Quebec income tax return.

Deduction for employees of international organizations

Use this option to enter the deduction for employees of certain international organizations if the deduction is not related to income from a T4. The taxpayer may deduct the net income he earned as an employee of the United Nations or a specialized agency related to the United Nations in accordance with the Charter of the United Nations. The net income is the employment income minus any related deductions. However, if the taxpayer worked for an organization established in Québec, he may deduct the portion of your income that relates to the employment duties he carried out in Québec only if the organization has concluded an agreement with the Québec government. Please note, that with respect to the Quebec income tax return, the amount entered with this option will appear on line 62 of Quebec's Schedule F - Contribution to the Health Services Fund. DT Max will report this amount on line 297 and code 14 on line 296 of the Quebec income tax return.

Use this option to enter the deduction for copyright income. If the taxpayer was a performing artist, or an artist within the meaning of the Act respecting the professional status of artists in the visual arts, arts and crafts and literature, and their contracts with promoters or the Act respecting the professional status and conditions of engagement of performing, recording and film artists, he may be entitled to a deduction, for 2023, for income from copyrights of which he was the first owner. Copyrights include public lending rights.
The taxpayer may claim this deduction if the total copyright income included in the business income or shown in box H of his RL-3 slip is $60,000 or less. In this case, complete Work chart 297.
DT Max will report this amount on line 297 and code 16 on line 296 of the Quebec income tax return.
Copyright income
Income from copyrights and public lending rights included in an individual's income, minus the amounts deducted as expenses incurred to collect the income.
Note
For a performing artist, this income includes income from copyrights for a performance, the right to equitable remuneration for a sound recording, and the right to remuneration for the reproduction of a sound recording for private use.

Deduction for shares in exchange for mining property

Use this option to enter the deduction for shares received in exchange for mining property. If the taxpayer disposed of shares that he received in exchange for mining property while he was a prospector, you may deduct 50% of the amount included in his 2023 income in this respect. DT Max will report this amount on line 297 and code 17 on line 296 of the Quebec income tax return.

See the Taxnet Pro™ T1 Line-by-Line Guide (subscription required):
Line 25600 - Additional deductions

See the CRA's general income tax guide:
Line 25600 - Additional deductions

Foreign-OV

Use Foreign-OV to override an amount for foreign tax credit and deduction calculated. Only one entry is required per country in the Foreign-Inc group. If multiple entries are made, DT Max will take the sum per country and claim the amount without exceeding the legal limit.

The following options are applicable for the keyword Foreign-OV.

T2209 - Non-business income tax paid (a)

T2209 - Net foreign non-business income (b)

T2209 - Basic federal tax (d)

T2209 - Federal non-business foreign tax credit

T2036 - Provincial non-business foreign tax cr.

TP-772 - Provincial non-business foreign tax cr.

T2209 - Business income tax paid (e)

T2209 - Basic federal tax (h)

T2209 - Federal business foreign tax credit

T2209 - Federal surtax of 48%

TP-772 - Provincial business foreign tax credit

Deduction under section 20(11)

Deduction under section 20(12)

Credit for tax paid to another province (Q409)

Use this option to enter the credit for tax paid to another province. DT Max will report this amount on line 409 of the Quebec Schedule E.
An individual may claim this new tax credit, if he meets the following conditions:

he is deemed to have resided in Quebec throughout the year for the reason that he sojourned there for one or more periods totaling 183 days or more in the year where he ordinarily resided outside Canada; and,

under a tax treaty between Canada and another country, he resides in such country and not in Canada and, for that reason, is deemed not to reside in Canada for the year for the purposes of the federal tax system.

Determination of the tax credit The amount that may be deducted for the year on account of the credit for tax paid to another province may not exceed the proportion of tax otherwise payable for the year of the eligible individual represented by the ratio between:

on the one hand, any portion of his income from an office or employment that is included, under the federal tax legislation, in the calculation of his taxable income earned in Canada for the year and that is attributable to the duties he carried out in a province other than Quebec, excluding an amount he deducts in calculating his taxable income for the year for the purposes of Quebec's tax system as an amount exempt from income tax in Quebec or in Canada because of a provision of a tax agreement entered into with a country other than Canada; and

on the other, his taxable income for the year.

In addition, the credit for tax paid to another province may be claimed on behalf of an eligible individual in the year of his or her death only in the calculation of the individual’s income tax otherwise payable, as established in the principal income tax return filed for that year.
These measures will apply as of the 2011 taxation year.

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