A Simple Tax Guide to Form T1135 for New Immigrants in Canada

Cynthia Chan
Mar 29
3 min read

As a new immigrant to Canada, understanding Canadian tax laws can feel overwhelming, especially when it comes to managing foreign assets. If you own assets or investments outside Canada, you may be required to file Form T1135 – Foreign Income Verification Statement with the Canada Revenue Agency (CRA). This form helps the CRA track foreign assets and ensure that any related income is reported correctly. Here’s everything you need to know about the T1135 form and how it may apply to you.

Who Needs to File Tax Form T1135 as a New Immigrant?

As a new Canadian resident, you’ll need to file Form T1135 if:

1. You are a resident of Canada for tax purposes (i.e., you live in Canada and meet the CRA’s criteria for residency).

2. The total cost of your foreign property (any assets outside of Canada) is more than $100,000 CAD at any time during the year.

Note: The $100,000 threshold is based on the cost of the asset when you acquired it, not its current market value.

What Counts as Foreign Property?

As a new immigrant, you might be unfamiliar with what the CRA considers “foreign property.” These are the most common assets that need to be reported:

Foreign bank accounts or money in financial institutions outside Canada
Stocks, bonds, or other securities from companies outside Canada (unless held in Canadian investment accounts like RRSPs or TFSAs)
Real estate outside Canada (e.g., property you own in your home country)
Foreign mutual funds or ETFs
Business interests or shares in foreign companies
Debts owed by foreign entities

What Doesn’t Count as Foreign Property?

You don’t need to report:

A vacation home outside Canada, as long as it’s not rented out for income
Property held inside Canadian registered accounts (e.g., RRSPs, TFSAs)
Stocks or mutual funds in Canadian investment accounts that hold foreign assets

How to File Form T1135

Filing Form T1135 depends on the total value of your foreign assets:

1. Simplified Reporting – If the total cost of your foreign assets is between $100,000 and $250,000 CAD, you can group them into broad categories (e.g., all foreign bank accounts or all foreign real estate) rather than listing each asset separately.

2. Detailed Reporting – If the total cost of your foreign assets is over $250,000 CAD, you must list each asset separately, including details such as the country where it’s located and income earned from it.

The form can be submitted electronically via tax software or by mailing a paper copy to the CRA.

When Is Form T1135 Due?

As a new immigrant, it’s essential to remember the following filing deadlines:

Individuals: April 30 (or June 15 if self-employed, but taxes owed must be paid by April 30) Corporations & Trusts: The same deadline as their tax return filing date

Note: Even if you don’t owe taxes, the form must be submitted on time to avoid penalties.

What Happens If You Don’t File?

Failure to file Form T1135 can result in serious penalties:

$25 per day up to a maximum of $2,500 for late filing
Increased penalties if CRA believes you intentionally avoided filing
Potential audit or investigation by CRA if they suspect tax evasion

It’s crucial to file on time to avoid these penalties, especially as a new immigrant who might not yet be familiar with Canadian tax rules.

Need Help with Form T1135?

If you have foreign assets worth more than $100,000 CAD and need assistance with Form T1135, don’t hesitate to reach out to us. Our team of tax professionals can help guide you through the process, ensure that your form is filed correctly, and help you avoid any potential penalties.

Contact us today for more information or to schedule a consultation! We’re here to help you navigate the Canadian tax system with ease.