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I hold a work permit and arrived in Canada in June 2024. I operate a one person sole proprietorship (with trade/company name) in a foreign country that is active, but gross receipts is less than CAD $100,000 for year 2024.
Will I be required to file those income sources in 2025 and if yes which form I need to use?
I appreciate your reply.
Hi David,
If you intend to live in Canada permanently and are therefore considered a factual resident of Canada, you must pay tax to the CRA on your global income. Complete form T2125 to report your foreign business income and expenses and Form T2209 (foreign tax credit) to report foreign taxes paid. Attach these forms with your T1 personal tax return, which is filed with the CRA.