If you’re living, working, or studying in Canada as a non-resident or newcomer, understanding how tax treaties work can help you avoid double taxation and reduce your overall tax burden.
Canada has agreements with many countries around the world designed to prevent you from paying tax on the same income in both Canada and your home country.
In this article, we’ll explain how Canada’s tax treaties work, how to find out if your country has one, and what kind of foreign income may not be taxable in Canada.
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Does my country have a tax treaty with Canada?
Canada has tax treaties with more than 90 countries, including the United States, China, India, the United Kingdom, Germany, and many more.
These treaties are designed to determine which country has the right to tax certain types of income and provide relief when income is taxable in both countries.
To find out if your country has a tax treaty with Canada, you can visit the official Government of Canada tax treaty list or reach out to a member of our team.
If your country is on the list, you may be able to benefit from reduced withholding tax rates or exemptions on specific types of income, like pensions, employment income, or dividends.
The Non-resident tax refund from Canada is $998
How do Canada’s tax treaties work?
Tax treaties allocate taxing rights between Canada and the other country. In most cases, they’re designed to:
- Avoid double taxation (being taxed in both countries on the same income)
- Provide reduced tax rates or exemptions on certain income
- Prevent tax evasion and fraud
- Offer residency tie-breaker rules to determine where you’re considered a tax resident if both countries claim you
For example, if you’re a resident of a country that has a treaty with Canada, and you receive income from a Canadian source, the treaty might reduce the Canadian withholding tax on that income.
Tax treaty documents you may need
To claim benefits under a tax treaty, you’ll usually need to complete certain forms or provide documentation.
The most common is Form NR301 (Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident).
This form helps the Canadian payer determine if a reduced withholding tax rate applies to the income you receive.
In some cases, the Canada Revenue Agency (CRA) may also ask you to provide:
- Proof of tax residency in your home country (like a certificate of residency)
- Supporting documents for income sources
- Additional forms based on the specific treaty provisions
The Non-resident tax refund from Canada is $998
How tax treaties are used for taxes in Canada
When filing a Canadian tax return as a non-resident, newcomer, or temporary resident, you may be able to claim Cnadian tax treaty benefits directly on your return. These benefits can reduce the amount of Canadian tax owed on:
- Employment income
- Business income
- Pension or retirement income
- Dividends and interest
- Royalties
For example, if you’re a student from India studying in Canada and receiving a scholarship, the Canada-India tax treaty may allow you to exempt that scholarship from Canadian tax, depending on your residency status and other factors.
The Non-resident tax refund from Canada is $998
What foreign income is not taxable in Canada?
Whether your foreign income is taxable in Canada depends on your residency status for tax purposes:
- Non-residents of Canada are generally taxed only on Canadian-source income.
- Residents of Canada are taxed on their worldwide income, but they may use tax treaties to claim foreign tax credits or exemptions.
Some examples of foreign income that may not be taxable in Canada (or may be tax-exempt under a treaty) include:
- Scholarships or bursaries for students from treaty countries
- Certain types of pension income
- Business income that is not earned through a Canadian permanent establishment
- Foreign employment income if you are a non-resident
Always check the specific tax treaty between Canada and your country to understand exactly what applies to your situation.
Canada’s tax treaties play a crucial role in helping non-residents and international taxpayers avoid double taxation and stay compliant with local tax laws.
Whether you’re a student, temporary worker, or retiree receiving foreign income, understanding these agreements can make a big difference in your tax outcome.
At Taxback, we specialize in helping international workers and newcomers to Canada navigate complex tax rules — including applying treaty benefits and filing your return correctly.
If you’re unsure whether you qualify for treaty relief, let our experts help you get the maximum refund and peace of mind.
The Non-resident tax refund from Canada is $998
Last Updated on May 2, 2025
