Income from an active business earned by a foreign affiliate in a treaty country is exempt fromCanadian taxation.

Question

Quizplus · Accepted Answer

This is true under Canada's foreign affiliate rules, which provide an exemption from taxation for the active business income earned by a foreign affiliate in a country that has a tax treaty with Canada. However, there are certain conditions and limitations that must be met in order for this exemption to apply.

Income from an Active Business Earned by a Foreign Affiliate