Line 256 - Income exempt under a tax treaty

If you included foreign income on your return (such as support payments you received from a resident of another country and reported on line 128) that is tax-free in Canada because of a tax treaty, you can claim a deduction for it. If you do not know whether any part of the foreign income is tax-free, contact us, or see Tax Treaties.

Note

Under the Canada-U.S. tax treaty, you can claim a deduction equal to 15% of the U.S. social security benefits, including U.S. medicare premiums, that you included in your income on line 115 - Other pensions or superannuation.

Frequently asked questions

I have a pension from a foreign country. They withhold the taxes. Can I get the tax back?

My aunt received a pension from Italy for my late uncle who spent all his working life in the armed forces. How does she report the income? My aunt's income including the pension is about $30,000. The rest of her income is investment income of $15,000.

Completing your tax return

Enter on line 256, the amount of your foreign income that is tax-free in Canada because of a tax treaty with a foreign country.

Forms and publications

• General Income Tax and Benefit Guide
• Form T2209, Federal Foreign Tax Credit
• Form T2036, Provincial or Territorial Foreign Tax Credit
• IT270R2, Foreign tax credit

Related topics

• International and Non-residents
• (Tax Treaties) - Department of Finance
• IT-506, Foreign income taxes as a deduction from income