When foreign tax authorities withhold taxes on the foreign source income of a Canadian resident, only the net amount received will be included in the Net Income For Tax Purposes of the Canadian resident.

Question

Quizplus · Accepted Answer

The gross amount of the foreign income is included in the Net Income For Tax Purposes of the Canadian resident, and the foreign taxes paid may be eligible for a foreign tax credit to avoid double taxation.

When Foreign Tax Authorities Withhold Taxes on the Foreign Source