Open
Source verified July 10, 2026
Federal foreign business income tax credit
Foreign tax credits for corporations
Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Overview
Schedule 21 lets corporations resident in Canada at any time in the year and authorized foreign banks claim federal foreign non-business and business income tax credits, provincial or territorial foreign non-business income tax credits, and the federal logging tax credit. It covers qualifying foreign tax paid and logging income in British Columbia or Quebec.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- No objectives are currently available
Eligible Funding
- Varies by project
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Operating a business in a foreign country
- Earning income or profits from foreign business operations
Documents Needed
- Schedule 21, Federal and Provincial or Territorial Foreign Income Tax Credits and Federal Logging Tax Credit
Official resources
Program guide
Application form
Eligibility
Who is eligible?
- Corporations resident in Canada at any time in the year
- Authorized foreign banks
Who is not eligible
- Corporations claiming tax on income exempt under a tax treaty
- Non-corporate taxpayers
Eligible expenses
- Foreign non-business income tax paid for the year
- Foreign business income tax paid for the year
- Logging tax paid on income from logging under Regulation 700 in British Columbia or Quebec
Ineligible Costs and Activities
- Income that is exempt from tax in Canada under an income tax treaty
- Dividends received from foreign affiliates
- Tax-exempt income as defined in subsection 126(7)
- Foreign tax that may reasonably be regarded as relating to an amount that any other person or partnership has received, or is entitled to receive, from that government
- Tax paid that is in excess of the limit and paid for dividends or interest on a share or debt obligation held for one year or less
Eligible geographic areas
- Canada
- Foreign countries where the business income was earned
How to apply
- Download and open the fillable PDF in Acrobat Reader 10 or higher.
Processing and Agreement
- The claim is reviewed through the corporation’s tax return and Schedule 21.
- Foreign business income tax credits are calculated separately for each country.
- Unused credits may be tracked for carryback or carryforward purposes.
Additional information
- Attach another Schedule 21 if claiming credits for more than five countries.
Frequently Asked Questions about the Federal foreign business income tax credit Program
What is the Federal foreign business income tax credit?
Schedule 21 lets corporations resident in Canada at any time in the year and authorized foreign banks claim federal foreign non-business and business income tax credits, provincial or territorial foreign non-business income tax credits, and the federal logging tax credit. It covers qualifying foreign tax paid and logging income in British Columbia or Quebec.
Who is eligible for the Federal foreign business income tax credit program?
To be eligible for the Federal foreign business income tax credit program, you must:
Corporation paying foreign business income tax
Business income earned in a foreign country
Claim filed on Schedule 21
What expenses are eligible under Federal foreign business income tax credit?
Operating a business in a foreign country
Earning income or profits from foreign business operations
Where is the Federal foreign business income tax credit available?
The Federal foreign business income tax credit program is available across Canada.
Is the Federal foreign business income tax credit a grant, loan, or tax credit?
Federal foreign business income tax credit is a Tax Credits
Who are the financial supporters of the Federal foreign business income tax credit?
Federal foreign business income tax credit is funded by Government of Canada