TP-772-V : Foreign tax credit for Québec residents

What’s in this article?

 

What is this?

This is a non-refundable Québec tax credit that you can claim for your business or non-business income tax paid to a foreign country. You must have paid income tax to the government of a foreign country or of a political subdivision of a foreign country, or paid a similar contribution to certain international organizations.

You can use form TP-772-V: Foreign Tax Credit to calculate the credit amount. The calculation of the tax credit depends on whether the foreign income is non-business or business income.

Note: You must complete the form outside of H&R Block's tax application, and enter the amount calculated on Line 90 of TP-772-V into Schedule E.

For non-business foreign income, your foreign tax credit cannot be more than the result of the following calculation:

The total foreign income tax paid on your non-business income, minus the foreign tax credit provided by the Canada Revenue Agency (CRA) on that income.

Foreign business income tax credit is calculated based on: Foreign income tax paid on business income minus certain deduction allowed by Revenu Québec or by CRA multiplied by 45%, plus any foreign tax credits carried forward from previous years.

The foreign tax you paid on non-business income may be shown on your RL-3, RL-15, RL-16, or RL-25 slip. The foreign tax you paid on business income may be shown on your RL-15 or RL-16 slip.

 

Am I eligible?

You can claim a foreign tax credit on your business or non-business income if you meet the following conditions:

  • You were a resident in Québec on December 31, or the date you ceased to reside in Canada in the year;
  • For the income in question, you paid income tax to the government of a foreign country or of a political subdivision of a foreign country, or you paid a similar contribution to certain international organizations.

 

Where do I claim this?

You must complete form TP-772-V: Foreign Tax Credit on Revenu Québec's website, and enter the amount from Line 90 on Schedule E.

 

Where can I learn more?