21 (1) An individual who was resident in Ontario on the last day of a taxation year ending after December 31, 2016, and who had income for the year that included income earned in a country other than Canada (in this section referred to as a “foreign country”) in respect of which an amount of non-business-income tax was paid by the individual to the government of that country for the year, may deduct in computing the individual’s tax payable under this Division for the year an amount equal to the total of all amounts, each of which is the individual’s foreign tax credit for the year in respect of a foreign country.
2017, c. 8, Sched. 30, s. 4 (2). Same (2) For the purposes of subsection (1), an individual’s foreign tax credit for a taxation year in respect of a foreign country is the lesser of “A” and “B” where, “A” is the amount, if any, by which “C” exceeds “D” where, “C” is the amount of the non-business-income tax paid by the individual for the year to the government of the foreign country, and “D” is, subject to subsection (3), the total of all amounts, each of which is the amount if any, deductible by the individual for the year under subsection 126 (1), (2.2), (2.21) or (2.22) of the Federal Act in respect of the foreign country, and “B” is the amount, if any, determined by multiplying the tax otherwise payable by the individual for the year by the ratio of “E” to “F” where, “E” is the amount, if any, determined in respect of the individual for the year under subparagraph 126 (1) (b) (i) of the Federal Act, and “F” is the amount, if any, by which “G” exceeds “H” where, “G” is, (i)  if section 114 of the Federal Act is not applicable to the individual for the year, the sum of the individual’s income earned in Ontario for the year and the individual’s split income for the year, or (ii)  if section 114 of the Federal Act is applicable to the individual for the year, the amount that would be the individual’s income earned in Ontario for the year if the individual’s income for the year determined under the Federal Act were equal to the amount determined under paragraph 114 (a) of the Federal Act in respect of the individual for the year, and “H” is the amount, if any, determined in respect of the individual for the year under subclause 126 (1) (b) (ii) (A) (III) of the Federal Act. 2017, c. 8, Sched. 30, s. 4 (2). When minimum tax applies (3) If the tax payable by an individual under Part I of the Federal Act for a taxation year is determined under section 127.5 of that Act, in determining the individual’s foreign tax credit for the year in respect of a foreign country, the description of “D” in subsection (2) shall be read as follows, “D” is the amount determined by multiplying the individual’s special foreign tax credit for the year under subsection 127.54 (2) of the Federal Act by the ratio of “C” to “I” where, “C” is the amount of the non-business-income tax paid by the individual for the year to the government of the foreign country, and “I” is the individual’s foreign taxes for the year within the meaning of subsection 127.54 (1) of the Federal Act, read without reference to “2/3 of”. 2017, c. 8, Sched. 30, s. 4 (2). Rules re foreign tax credit (4) The following rules apply in respect of an individual’s foreign tax credit for a taxation year: 1. Subsection 126 (6) of the Federal Act and the definition of “non-business-income tax” in subsection 126 (7) of the Federal Act apply for the purposes of this section. 2. For the purposes of subsection (2), the expression “tax otherwise payable” by an individual for a taxation year means the amount of tax that would be payable under this Division by the individual for the year if that amount were determined without reference to this section and sections 13, 14, 19.1, 19.2, 20.1, 21.1 and 22. 2017, c. 8, Sched. 30, s. 4 (2); 2018, c. 17, Sched. 42, s. 5. Section Amendments with date in force (d/m/y) 2014, c. 7, Sched. 29, s. 5 - 01/01/2014 2016, c. 5, Sched. 28, s. 11 - 01/01/2016 2017, c. 8, Sched. 30, s. 4 (1) - 01/01/2009; 2017, c. 8, Sched. 30, s. 4 (2) - 17/05/2017 2018, c. 17, Sched. 42, s. 5 - 06/12/2018