Income from China: Do You Have to Report It in Canada?

The basic rule for Canadian residents reporting worldwide income, which income from China and Hong Kong you need to report

Scott Tang, CPAUpdated 2026-11-052026 rules5 min read

Once you become a Canadian tax resident, any wages, rent, interest or gains on shares you still have in China or Hong Kong must be reported in Canada. What matters to Canada is whether you are a resident — not where the money was earned or whether it was brought into Canada. Income tax you have already paid in China can, if it qualifies, be credited against your Canadian tax up to a limit, which avoids most double taxation; but because of differences in the tax base, the tax year, the treaty and the credit limit, there may still be a gap between the two.

Worldwide income

Canadian tax residents must report income from all sources

Canadian dollars

Foreign-currency income and foreign tax must both be converted into Canadian dollars

Can be credited

Income tax paid in China can, if it qualifies, be credited up to a limit

April 30

Personal tax filing deadline; June 15 if you are self-employed, but interest on any balance owing still runs from April 30; the budget proposes a single May 15 deadline from the 2027 taxation year (not yet law)

Canada taxes you based on residence

Item	Canadian tax residentRecommended	Non-resident
Which income to report	Worldwide income, wherever it was earned and whether or not it was brought into Canada	Only certain income from Canadian sources
Tax paid in China	A foreign tax credit can generally be claimed	Not applicable
Foreign property	File T1135 if the total cost is more than C$100,000	Not required

For when you count as a resident and from which day, see "When Do You Become a Canadian Tax Resident?" in the Changing Tax Residency series. In the year you become a resident, you pay Canadian tax only on your worldwide income from the date you became a resident; money you earned abroad before that is not taxed in Canada.

Common income from China and Hong Kong: how to report it in Canada

Income	Employment income T1 line 10400	Rental income T776	Investment income Interest, dividends	Capital gains Schedule 3
Wages and bonuses from a Chinese company	✓Report in Canadian dollars	—	—	—
Rent from a home in China	—	✓Related expenses can be deducted	—	—
Bank interest, returns on wealth management products	—	—	✓Report as received or as accrued	—
Dividends on A-shares and Hong Kong shares	—	—	✓Foreign dividends, no dividend tax credit	—
Selling shares or funds	—	—	—	✓Half is included in income
Selling a home in China	—	—	—	◐First check whether the principal residence exemption applies

Wages and bonuses from a Chinese company

💼 Employment income: ✓Report in Canadian dollars
🏠 Rental income: —
📈 Investment income: —
🔁 Capital gains: —

Rent from a home in China

💼 Employment income: —
🏠 Rental income: ✓Related expenses can be deducted
📈 Investment income: —
🔁 Capital gains: —

Bank interest, returns on wealth management products

💼 Employment income: —
🏠 Rental income: —
📈 Investment income: ✓Report as received or as accrued
🔁 Capital gains: —

Dividends on A-shares and Hong Kong shares

💼 Employment income: —
🏠 Rental income: —
📈 Investment income: ✓Foreign dividends, no dividend tax credit
🔁 Capital gains: —

Selling shares or funds

💼 Employment income: —
🏠 Rental income: —
📈 Investment income: —
🔁 Capital gains: ✓Half is included in income

Selling a home in China

💼 Employment income: —
🏠 Rental income: —
📈 Investment income: —
🔁 Capital gains: ◐First check whether the principal residence exemption applies

Dividends paid by foreign companies do not qualify for the Canadian dividend tax credit; the full amount received (before any tax is withheld) is included in income. For gains on selling shares or property, half is currently included in taxable income. For how to work these out, see the later articles in this series.

Five steps to report your foreign income correctly

1
Confirm your status
Which part of this year you were a Canadian resident
2
Make a list
Wages, rent, interest, dividends, sales
3
Convert to CAD
The exchange rate on the transaction date or the annual average rate
4
Report income, claim credit
Income goes on your T1; claim the foreign tax credit on Form T2209
5
Check T1135
Whether the total cost of your foreign property is over $100,000

Points to watch

Report it even if you haven't brought it in
Money left in an account in China is still your income for the year. For tax, what counts is when you earn it, not when you bring it into Canada.
Keep your records
Tax payment certificates and withholding certificates from China, bank statements and leases are what you rely on to claim the credit and to answer the CRA if it asks later; keep them for at least 6 years in general.
Report your assets separately
If the total cost of your specified foreign property is more than C$100,000, you also have to file Form T1135 (not required for the year an individual first becomes a Canadian resident; see "Your First Year as a Tax Resident: Do You Need to File the T1135?" in the Changing Tax Residency series). Filing a T1135 is not the same as reporting the income — you need to do both.
Missed something in past years
Correcting it yourself early is generally easier to deal with than having the CRA find it; see "Unreported Foreign Income from Past Years? The Voluntary Disclosures Program" in this series.

How Sheng Qian CPA can help

Clear explanations in Chinese
We go through your income and assets in China and Hong Kong with you in Chinese, and list what needs to be reported and how.
Income, credit and T1135 together
Your foreign income, the foreign tax credit and the T1135 are done in the same tax return, so the numbers match.
Reminders every year
We send you a document checklist before tax season; for fees, see "What Sheng Qian CPA Can Do for Cross-Border Families: From Tax Returns to Foreign Asset Reporting" in this series.

Sources

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements. Service fees are as set out in our written quote.