Canadian source income is an important concept to understand for anyone earning income in Canada. Whether you are a Canadian resident or a non-resident earning income in Canada, knowing what constitutes Canadian source income can help you determine your tax obligations and ensure compliance with Canadian tax laws.

Canadian-sourced income can include a wide range of income sources, such as:

• Employment income earned in Canada

• Income from a business or profession carried on in Canada

• Investment income from Canadian property

• Rental income from real estate located in Canada

It's important to note that Canadian tax laws can be complex, and determining whether income is considered Canadian source income can sometimes be challenging. Consulting with a tax professional or accountant can help ensure that you correctly identify and report your Canadian source income.

For Canadian residents, all income earned, whether from Canadian or foreign sources, is generally subject to tax in Canada. This means that Canadian residents are required to report and pay tax on their worldwide income.

Non-residents earning income in Canada are also subject to Canadian tax laws when it comes to Canadian source income. Non-residents who earn Canadian source income may be subject to withholding tax, which is deducted at the source of the income.

Understanding what constitutes Canadian source income is crucial for both Canadian residents and non-residents earning income in Canada. By knowing your tax obligations and ensuring compliance with Canadian tax laws, you can avoid potential penalties and consequences for non-compliance.