Line 121 - Foreign interest and dividends

If you received foreign interest or dividend income, you have to report it in Canadian dollars. Use the Bank of Canada exchange rate in effect on the day you received the income. If you received the income 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.

Report on line 121 any foreign dividends you received. Foreign dividends do not qualify for the dividend tax credit.

If you paid foreign taxes on your interest or dividend income, you may be able to claim a foreign tax credit when you calculate your federal (see line 405) and provincial or territorial taxes (Form 428). Do not subtract the taxes from your income when you report it.

If you own an interest in a foreign investment entity or an interest in a foreign insurance policy, you may have to report investment income. For more information, contact the CRA.

If as a shareholder in a foreign corporation, you received certain shares in another foreign corporation, you may not have to report any amount as income for receiving shares. For more information, contact the CRA.

Completing your tax return

Report on line 121 the total interest and investment income.

Forms and publications

• General income tax and benefit package - Guide, return and schedules
• Form T1135, Foreign Income Verification Statement
• Form T2036, Provincial or Territorial Foreign Tax Credit
• Form T2209, Federal Foreign Tax Credits

Related topics

• Line 221 - Carrying charges and interest expenses
• Federal foreign tax credit

Date modified:

2016-05-30