Residents must report worldwide income for comprehensive income tax purposes — rental income back home, foreign interest income, side income from a company in your home country all must be combined with domestic income and filed in May.
If you already paid tax on that income abroad, you can claim a foreign tax credit to avoid being taxed twice on the same income. The credit is capped at "domestic computed tax × (foreign-source income ÷ total taxable base)," and any foreign tax paid beyond that cap can be carried forward for up to 5 years.
Documents for the foreign tax credit claim
Omitting foreign income costs more when it surfaces later
Whether unreported by mistake or by choice, foreign income that surfaces later — often through automatic financial information exchange between countries (CRS) — gets reassessed with penalties added. If you hold foreign accounts or assets, voluntary disclosure is far cheaper.
Frequently Asked Questions
Related Topics
Who Must File a Global Income Tax Return, How, and By When
Whether you need to file, how to do it on Hometax, and the May filing deadline (with its exceptions).
Applying and Calculating the Tax-Treaty Limited Rate
Why the treaty rate wins when lower than the domestic rate, and how to apply for it before income is paid.