Foreign tax credit

The foreign tax credit is for eligible corporations that pay taxes to another country on foreign non-business income. The credit reduces the provincial tax otherwise payable.

• For full details about the foreign tax credit, including eligibility requirements, and how and when to claim the tax credit, see the Provincial and Territorial Foreign Tax Credits section on the Canada Revenue Agency’s website.

Claiming the credit

You can claim the credit when you file your T2 Corporation Income Tax Return. Enter the amount of the B.C. foreign tax credit you’re claiming on line 650 of Schedule 5, Tax Calculation Supplementary – Corporations.

Legislation

The following legislation applies to the foreign tax credit:

• Income Tax Act (B.C.) Section 14(3) to 14(5.2)