Canada’s tax treaties with India, the Philippines, Sri Lanka, China and Nigeria

What does a tax treaty do for a newcomer?

A tax treaty is an agreement between Canada and another country. The CRA says treaties aim to avoid double taxation and prevent tax evasion. For a newcomer, a treaty does four main things:

• Breaks a tie when both countries say you are their resident.
• Splits taxing rights for pensions, rent, interest, dividends and gains.
• Caps withholding tax that the paying country can take from interest and dividends.
• Promises relief, usually as a credit against Canadian tax for tax paid in the other country.

A treaty does not let you leave income off your return. Once you are a resident, you report world income in Canadian dollars. If a treaty makes some income exempt in Canada, you still report it, then deduct the exempt part on line 25600. See how the credit works with the foreign tax credit calculator.

When was each treaty signed and when did it start?

Finance Canada lists each treaty by the date it was signed. The date it entered into force came later. As of October 2026, Finance Canada lists no later amending protocols for these five treaties.

The last column comes from each treaty’s “entry into force” article. The Philippines and Sri Lanka treaties apply from January 1 of the year they came into force. The others apply from January 1 of the next year. The China agreement does not mention Hong Kong.

What if both countries say you are their resident?

Each treaty has a residence article with the same order of tests for people:

1. Permanent home: you are a resident of the country where you have a permanent home available to you.
2. Centre of vital interests: if you have a home in both, the country with your closer personal and economic ties.
3. Habitual abode: if that is unclear, the country where you usually live.
4. Nationality: if still unclear, the country of your citizenship.
5. Mutual agreement: if you are a citizen of both or neither, the two tax authorities decide.

If the tie-breaker makes you a resident of the other country, Canadian law treats you as a non-resident of Canada. See dual residency and the tie-breaker for examples, and the tax residency checker for the first step.

Who can tax a pension from your home country?

This is the biggest difference between the five treaties. “Paying country” means the country where the pension arises.

The Philippines $5,000 amount is in Canadian dollars, and the treaty lets the two tax authorities agree on a different amount by exchange of letters. When a treaty makes a pension taxable only abroad, you still put it on line 11500 and deduct it on line 25600. Details and examples are in foreign pensions and Canadian tax.

How much can the other country withhold from interest and dividends?

These are the highest rates the paying country may charge a resident of Canada who is the beneficial owner, as written in each treaty. Canada then taxes the full amount and gives a credit for the foreign tax.

Who can tax rent and gains on property back home?

• Rent from land or buildings: under all five treaties, the country where the property is located may tax the income. Canada also taxes it and gives a foreign tax credit.
• Selling land or buildings: the Philippines, Sri Lanka and China treaties let the country where the property is located tax the gain. The India treaty lets both countries tax most gains. The Nigeria treaty lets each country tax gains under its own law.
• Six-year rule: the Philippines and Sri Lanka treaties let a country tax some gains of a person who was its resident in the six years before the sale.

See selling or renting out property in your home country for a worked example.

How to use a treaty text safely

• The China, Philippines and Sri Lanka texts on the Finance Canada site say they are for convenience of reference only and have no official sanction. For an important decision, check the official Canada Treaty Series version.
• Canada ratified the Multilateral Instrument (MLI) on August 29, 2019. It changes a treaty only if both countries listed it. It adds measures against treaty abuse and tax avoidance. This page does not track which of the five treaties it changes.
• The CRA says a certificate of residency may be required to get treaty benefits. Its tax treaties page explains how to get one.
• The CRA says foreign tax withheld above the treaty rate is not foreign tax paid for the foreign tax credit. It says to ask the foreign tax authority for a refund of the excess.

Country guides and next steps

• Tax guide for newcomers from India
• Tax guide for newcomers from the Philippines
• Tax notes for newcomers from Sri Lanka, China and Nigeria
• Check if you need to file the foreign property form with the T1135 checker.

Common questions

Sources

• Finance Canada: Tax treaties in force
• Canada–India tax agreement, signed January 11, 1996 (Global Affairs Canada treaty text)
• Global Affairs Canada: Canada–India tax agreement record (entry into force May 6, 1997)
• 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)
• Finance Canada: Canada–Sri Lanka tax convention, signed June 23, 1982
• Publications Canada: Canada–Sri Lanka convention, Canada Treaty Series 1986 No. 24 (in force June 9, 1986)
• Finance Canada: Canada–China tax agreement, signed May 12, 1986
• Justice Laws: SI/87-36, notice that the Canada–China agreement came into force December 29, 1986
• Canada–Nigeria tax agreement, signed August 4, 1992 (Global Affairs Canada treaty text)
• Global Affairs Canada: Canada–Nigeria tax agreement record (entry into force November 16, 1999)
• Finance Canada: Canada ratifies the Multilateral Instrument (August 29, 2019)
• CRA: Tax treaties (includes certificate of residency)
• CRA: Income Tax Folio S5-F2-C1, Foreign tax credit (¶1.35, tax withheld above the treaty rate)
• CRA: Completing your return for newcomers
• CRA: Line 11500, Other pensions and superannuation (pensions from a foreign country)

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