My client earned interest and dividend in Switzerland. How should i reported in profile.

RB57 · ‎March 10, 2021

My client earned interest and dividend in Switzerland. How should I reported in profile? Is this 15% for interest and 25% for dividend? Where I should declare this rate? When I put interest income to foreign screen there is no possibility to put rate.

janisbossenberry · ‎March 11, 2021

The rates you are referring to are withholding rates, not tax rates. Your client reports the interest and dividends all as investment income on the FOREIGN screen, converted to Canadian $$, and pays tax at whatever marginal rate they are at. If there has been tax withheld by the payer in Switzerland, they can claim that as a foreign tax credit by showing it as Foreign tax paid on the FOREIGN screen.

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janisbossenberry · ‎March 11, 2021

The rates you are referring to are withholding rates, not tax rates. Your client reports the interest and dividends all as investment income on the FOREIGN screen, converted to Canadian $$, and pays tax at whatever marginal rate they are at. If there has been tax withheld by the payer in Switzerland, they can claim that as a foreign tax credit by showing it as Foreign tax paid on the FOREIGN screen.

RB57 · ‎March 12, 2021

Thank you! it was very helpful!