What is the T2036 tax form?

If you paid taxes to a foreign government, you may be able to get them back as a tax credit. The form is used to calculate the non-business foreign tax credit you can subtract from the income tax you owe to the province or territory where you lived at the end of the year. This includes foreign non-business income such as pension income, employment income, director’s fees, commissions, interest, dividends, and some taxable capital gains.

What do I have to do?

Fill out the T2209 tax form, for Federal Foreign Tax Credits. If the amount of the federal credits you can claim is equal to the foreign non-business tax you paid, your provincial or territorial tax credit will be zero.

What if I paid tax in several countries?

If the amount of tax you paid is more than $200, you must complete a T2036 form for each country. In that case, you will not be able to use the NETFILE service to submit your return. You will have to print and mail your tax return to the CRA.

Can anybody use the provincial foreign tax credit form?

It does not apply to Manitoba residents who are subject to minimum tax or to Québec residents.

For more information, please consult the CRA – Provincial and territorial foreign tax credits.