Foreign income - dividends - Limit of foreign tax credit and deduction (T2209)

[MartinD.]

 

Hi community,
I am a Canadian resident filing my taxes in Canada. I received dividend payments from a German stock company.
Under "Foreign income or foreign property" I therefore launched the page "Foreign income - dividends".

On this page I am entering:

1. Country from where I received the foreign income
2. Description of the income "dividends"
3. Exchange rate 1.000 (since I fill everything in CAD)
4. Amount of foreign income received in CAD (gross)
5. Amount of foreign tax paid in CAD (tax at source in Germany ~ 26%)
6. Income exempt under a tax treaty
7. Limit of foreign tax credit and deduction (T2209)
 

Now I struggle with number 6. and 7.

As per my understanding of the Treaty between Germany and Canada (E103872), dividend income is not exempt.
I therefore fill in 0.00 CAD under 6. "Income exempt under a tax treaty". Please confirm that my understanding here is accurate.

Also I am unsure with number 7. "Limit of foreign tax credit and deduction (T2209)". What amount should be filled in there? I suspect it could be 15% of the gross income in CAD? It also may be all taxes at source which exceeds 15%?
Kindly elaborate on bullet 6. and 7.
You support is greatly appreciated.
Brgds, Martin

[Geo123]

Hello MartinD.,

6. Income exempt under a tax treaty

>>Leave as NULL (blank) as you say the income is not exempt

7. Limit of foreign tax credit and deduction (T2209)

>>Check with the CRA - foreign dividends do not receive the Dividend Tax Credit