Tax guide for newcomers from the Philippines: remittances, property and the treaty

What does Canada tax once you arrive?

Once you are a resident of Canada, the CRA says you report your world income. For most newcomers this starts on the day they arrive and set up a home.

• Before your residency date: Philippine income is not taxed in Canada. You still enter it as world income for benefits.
• After that date: report Philippine interest, rent, dividends, pensions and gains.
• Convert pesos to Canadian dollars at the Bank of Canada rate for the day you received each amount.

For the full arrival-year return, see your first tax return, step by step.

Do remittances count as income?

No. Money you send to family in the Philippines comes from income you already earned and reported. Sending it is not a new taxable event for you, and it does not go on your return as income. It is generally not a deduction either. Some credits for dependants have their own rules, so check the CRA before you claim any amount for family members abroad.

• Money a relative sends you is generally a gift, not income. See is gifted money taxable in Canada.
• Interest earned on money you keep in a Philippine account is income, even if you never move it to Canada.

For transfer costs and cash rules, see sending money to the Philippines.

What does the Canada–Philippines treaty say?

The convention was signed on March 11, 1976 and entered into force on December 21, 1977.

Article XXII says Canada deducts Philippine tax from Canadian tax on income that both may tax. Compare with other treaties in five tax treaties compared.

SSS, GSIS and other Philippine pensions

Under Article XVIII, a pension arising in the Philippines and paid to a resident of Canada is taxable only in the Philippines. The CRA says you still report treaty-exempt pension income on line 11500, then deduct it on line 25600.

Example: a pension worth $9,000 in a year. The Philippines can tax at most 30% of $4,000 (the part above $5,000), which is $1,200. Canada taxes none of it. Whether a specific SSS or GSIS payment counts as a “pension” under the treaty is a question to confirm with the CRA. See foreign pensions and Canadian tax.

Example: Maria’s first return

Maria became a resident of Canada on March 15, 2026, in Edmonton. She kept a savings account and a condo in Cebu.

• Savings interest after March 15: $600. The bank withheld $60. She reports $600 and claims a foreign tax credit for the $60, up to the Canadian tax on that interest.
• Condo: her parents live in it rent-free. There is no rental income to report. Its value on March 15 becomes its cost for Canadian tax.
• Remittances: she sends $300 a month to her parents. This is not income to her, and she does not claim it as a deduction.
• Form T1135: not needed for 2026, her arrival year. For later years, a condo used by family without rent may be personal-use property, which the CRA says is not reported on T1135.

Amounts are in Canadian dollars at the Bank of Canada rate on each date. Estimate the credit with the foreign tax credit calculator.

Renting out or selling property in the Philippines

• Value on arrival: Canada treats property you owned when you became a resident as bought at its fair market value on that day. Keep proof of the value.
• Rent: report net rent on Form T776 in Canadian dollars. Claim a credit for Philippine tax on it.
• Sale: the Philippines may tax the gain on land or buildings located there. Canada taxes the gain above your value on arrival and gives a credit.
• T1135: a rented condo is generally reportable if your foreign property cost is over $100,000.

See the full example in selling or renting out property in your home country.

Do you still have Philippine tax duties?

Possibly. Article XXVII of the treaty lets the Philippines tax its citizens under its own law, but not more heavily than if they lived in the Philippines. This page does not explain Philippine tax rules. Check the Bureau of Internal Revenue (BIR). If both countries treat you as a resident, the treaty tie-breaker applies. See dual residency and the tie-breaker.

Common mistakes

• Thinking only Canadian pay counts. Philippine interest and rent after your residency date are taxable in Canada.
• Netting tax off income. Report the gross interest and claim the Philippine tax as a credit.
• Leaving a Philippine pension off. Report it, then deduct it on line 25600.
• Deducting remittances. Money you send home is generally not a deduction. Check the CRA’s rules before claiming any amount for family abroad.

Common questions

Sources

• Finance Canada: Canada–Philippines tax convention, signed March 11, 1976
• Publications Canada: Canada–Philippines convention, Canada Treaty Series 1977 No. 6 (in force December 21, 1977)
• CRA: Completing your return for newcomers
• CRA: Newcomers to Canada and the CRA
• CRA: Line 11500, Other pensions and superannuation (pensions from a foreign country)
• CRA: Line 25600, Additional deductions (exempt foreign income)
• CRA: Line 40500, Federal foreign tax credit
• CRA: Income Tax Folio S5-F2-C1, Foreign tax credit (¶1.35, tax withheld above the treaty rate)
• CRA: Questions and answers about Form T1135
• Justice Laws: Income Tax Act, section 128.1 (becoming resident: deemed disposition and acquisition)
• Bank of Canada: Exchange rates
• Bureau of Internal Revenue (Philippines)

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.