Foreign tax credit limit calculator
Work out how much foreign tax is creditable this year and how much carries forward.
Open itThe year you arrive or leave is two tax positions in one calendar. This splits it at the date, allocates income across the two parts, taxes each on its own basis and shows what the split saved against a full year of residence.
The year you moved
days
Use 366 for a leap year, or the length of a short period if the year is not a full one.
days
Count from arrival to year end, or from year start to the day residence ended.
$
Salary and other income that accrues day by day. Put one-off items in the field below instead.
$
Only the income this country can tax while you are not resident — local rent, local employment days, local dividends.
%
Your blended rate on the resident-period income, not your top marginal rate.
%
Often a flat withholding rate. Use the treaty rate where you are claiming one.
Tax across both parts
—
Effective rate on what this country taxes —
Resident days—
Non-resident days—
Share of the year spent resident—
Income in the resident part—
Tax on the resident part—
Income in the non-resident part—
Of which this country cannot reach—
Tax on the source income in that part—
If the whole year were resident—
Difference the split makes—
Two bases, one calendar
In the resident part of the year the country taxes your worldwide income. In the non-resident part it taxes only what arises within its own borders. The split is not a discount — it is two different tax bases applied to two different stretches of the same twelve months.
That is why the calculator asks for the source-country income in the non-resident part separately. Income that accrues abroad after you leave is simply outside the net, and the readout names that figure so you can see what the change of status actually removed.
What a day-count allocation gets wrong, and when it does not matter
Pro-rating by days is right for income that genuinely accrues evenly: a salary, a rent, an interest coupon. It is wrong for anything that happened on a date. A bonus paid for a period worked wholly before you left belongs to the earlier period however the payroll dated it; a capital gain belongs to the day of disposal; a share vesting is allocated over its own vesting period, not over the tax year.
So put the even income in the main field and handle the dated items separately. Where a departure triggers a deemed disposition or an exit charge, that is a distinct computation and not part of this allocation at all.
Worked example
A consultant leaves Canada for Dubai on day 200 of a 365-day year. Salary for the year is 120,000, accrued evenly. She keeps a Canadian rental producing 8,000 in the remaining 165 days.
- 200 of 365 days resident, so 65,753 of the salary falls in the resident part and 54,247 in the non-resident part.
- Canada taxes the resident-part salary on a worldwide basis, and taxes the 8,000 of rent in the non-resident part. The 54,247 of Dubai-period salary is outside its reach.
- A full year of residence would have taxed the whole 120,000. The difference is the number the readout calls the saving.
Note what the split does not do: it does not remove the departure-year deemed disposition, and it does not decide the date. The date is a question of fact about ties.
What this calculator assumes
- Evenly accrued income is pro-rated by days. Dated items — bonuses, gains, vesting share awards, severance — are not, and belong outside this allocation.
- The non-resident part taxes only source-country income, at the rate you enter. A flat withholding rate and an assessed rate are both entered the same way here.
- No exit charge, deemed disposition or arrival-year basis adjustment is included. Those are separate computations.
- Personal allowances and credits are often themselves pro-rated in a part-year. The effective rate you type should already reflect that.
An estimate, not advice. This is an estimate built from what you typed, not advice on your file. Nothing here reads your documents, checks your treaty article or looks at the year you are actually in. Where the number matters, we agree a fixed fee in writing before any work starts.
Where these figures come from
- current guidance Canada — leaving Canada, emigrants, CRA
- current guidance United States — dual-status aliens, IRS
- current text India — residential status, section 6, Income Tax Department
Any figure prefilled in the panel above is stated with the year it belongs to and can be changed. Rates and thresholds move; a calculator that asks you for the current one stays right, and one that hides a guess does not.
What these engagements turn on
Case study 1
A Pricing Study That Started With Who Does What
Functions, assets and risks decide which entity should earn the return, and the method follows from that rather than the other way round. Getting the sequence backwards is how a study fails on its first question.
Read how this one runs
Case study 2
Deemed Resident or Factual Resident — Not the Same File
The two statuses attract different returns, different credits and different provincial treatment, and the label is decided by facts rather than chosen. Establishing which applies is the work; the filing follows from it without argument.
Read how this one runs
Case study 3
Paid for Work Done in Canada While Living Elsewhere
Employment carried out in Canada is taxable here even where the employer and the bank account are not. The engagement establishes how many of the days were worked in Canada, applies the treaty employment article, and deals with the withholding the payer has already taken.
Read how this one runs
Case study 4
First Canadian Return After Arriving Mid-Year
The arrival date splits the year and sets the cost base of what you brought with you. Getting that date and those values right is what determines whether a later sale is taxed on the whole gain or only on the part that accrued after landing.
Read how this one runs
Case study 5
A Second Opinion on a Return Already Filed
A cross-border return prepared on one side only is usually right in isolation and wrong in combination. The review checks residence, source and relief in that order, and says plainly whether an amendment is worth making.
Read how this one runs
Case study 6
Social Security Contributions Owed in Two Countries at Once
A totalization agreement assigns contributions to one system and exempts the other, but only against a certificate obtained in advance. Without it both sets come out of the same salary and neither is straightforward to recover.
Read how this one runs
Case study 7
A Shareholder Loan Across a Border at No Interest
An interest-free loan between related companies is priced as if it carried interest, and in some cases a deemed benefit follows as well. The file sets a rate against the borrower's own credit profile and documents the terms that support it.
Read how this one runs
Case study 8
A Non-Resident Estate Holding US Assets
US situs assets sit inside the US estate tax net regardless of where the owner lived, and the exemption available to a non-resident is not the resident one. The file establishes situs asset by asset before any relief is claimed.
Read how this one runsAll case studies — every published engagement in one place.
Core International & Cross-Border Tax Services
International Tax Planning & Advisory
Strategy and compliance for income, assets and families spread across borders.
One coordinating team: filings on every side of the border are sequenced so treaty relief and foreign tax credits are claimed once — and in the right country.
U.S. & Cross-Border Tax Returns
Dual filers: U.S. citizens in Canada and Canadians with U.S. income run two parallel systems — we prepare both, in the right order, every year.
Expat & Emigration Tax
The move year is its own project: the elections and valuations filed that year decide the next decade of both countries’ returns.
Non-Resident Canadian Tax
Default withholding is 25% of gross: elective returns routinely turn over-withheld rent and pensions into refunds.
Transfer Pricing & BEPS
Documentation prepared with the return is the cheapest insurance in international tax; reconstructing it during an audit is the most expensive.
Tax Treaties & Withholding
Relief is only as good as the paperwork claiming it — we build treaty positions that survive review on both sides.
Cross-Border Estates & Trusts
Wills drafted for one country routinely misfire in the other — deemed disposition here, estate tax there, credits in between.
Global Investments & Reporting
Information returns carry the sharpest penalties — $25 a day whether or not any tax is owing. We keep them clean and on time.
Cross-Border Corporate Tax
Expansion raises the same four questions every time — entity, PE, repatriation, payroll. We answer them before the tax authorities do.
India Tax for NRIs & Returning Residents
The deduction is taken on the sale price, not the gain — which is why an NRI property sale strands cash unless the certificate is applied for before closing.
Canadian Tax with a Foreign Element
Residency is decided on facts, not on a form — and the year you arrive or leave is the one where the largest amounts turn on the smallest details.
UAE Tax for Expats & Their Home Country
A zero-tax country is only half the answer — the question that decides the bill is whether the country you came from still treats you as resident.
Industries & Client Types We Serve Worldwide
Global E-commerce & Marketplaces
Technology & SaaS
Professional Services Firms
Cross-Border Real Estate
Importers, Exporters & Manufacturers
Athletes, Artists & Entertainers
Remote Workers & Digital Nomads
Investment Funds & Holding Companies
Global E-commerce & Marketplaces
- Foreign VAT / GST / sales tax registrations
- Marketplace withholding reviews
- Inventory nexus & PE analysis
- Multi-currency books reconciled
Who We Serve:
Technology & SaaS
- Cross-border revenue sourcing & withholding
- IP structuring with real substance
- Equity for cross-border teams
- U.S. expansion: entity & PE setup
Who We Serve:
Professional Services Firms
Firms and partners working across borders meet Regulation 105 withholding, PE risk on long engagements and per-country payroll for travelling staff.
A partnership is taxed in the hands of its partners, so one engagement abroad can reach every partner's personal return. The order matters: the waiver is applied for before the invoice, the presence is tracked before it becomes an establishment, and the payroll is registered before the first day worked in the other country.
- Reg 105 / 102 waivers
- Permanent establishment risk
- Partner mobility planning
- Cross-border withholding recovery
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Cross-Border Real Estate
- Section 216 rental returns
- FIRPTA withholding recovery
- Section 116 clearance
- Treaty credit optimization
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Importers, Exporters & Manufacturers
- Transfer pricing documentation (s.247)
- Customs value vs transfer price
- Foreign affiliate reporting (T1134)
- Country-by-country reporting
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Athletes, Artists & Entertainers
- Reg 105 & U.S. CWA agreements
- Multi-state & country calendars
- Touring income allocation
- Royalty & image-rights withholding
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Remote Workers & Digital Nomads
- Residency analysis before moving
- Employer payroll exposure
- Totalization & social security
- Foreign tax credits
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Investment Funds & Holding Companies
- Treaty access & PPT reviews
- FAPI & surplus computations
- Withholding-efficient routing
- Governance & substance
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