Line 115 - Pensions from a foreign country

If you received a pension from another country, you must report the total amount on your return in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the pension. If you received the pension at different times during the year, use the average annual rate. The average monthly rate and the daily rate are available by visiting the Bank of Canada website.

Attach a note to your paper return identifying the type of pension you received and the country it came from. In some cases, amounts you receive may not be considered pension income and you may have to report it at a different place on your return.

If there is a tax treaty with the country your pension is from, you can claim a deduction on line 256 for the part of your foreign pension income that is tax-free in Canada.

If you paid foreign taxes on your pension, you may be able to claim a foreign tax credit when you calculate your federal and provincial or territorial taxes (see line 405). Do not subtract the taxes from your income when you report it.

Two common types of foreign pension are:

• United States individual retirement arrangement (IRA); and
• United States Social Security.

Questions and answers

I received a pension from a foreign country and they withheld the taxes. Can I get the tax they withheld back?

I started receiving a social security pension from Germany last year. How do I calculate the tax-free portion?

In 2010, my aunt received a pension from Italy for my late uncle who worked in the Italian armed forces. How does she report the income? My aunt's income included the pension of $30,000 and interest income of $15,000.

Completing your tax return

Report on line 115 your gross foreign pension income in Canadian dollars.

Forms and publications

• General income tax and benefit package - Guide, return and schedules
• Interpretation Bulletin IT-499, Superannuation or Pension Benefits
• Interpretation Bulletin IT-506, Foreign Income Taxes as a Deduction from Income

Related topics

• Line 256 - Additional deductions
• Line 314 - Pension income amount
• Line 405 - Federal foreign tax credit
• Provincial or territorial foreign tax credit
• Seniors
• Tax treaties

Date modified:

2017-01-04