I'm preparing to do my taxes for the first full year after migrating from New Zealand to Canada, and am now a tax resident of Canada. The countries do have a double taxation agreement in place (https://www.fin.gc.ca/treaties-conventions/newzealand-nouvellezelande-eng.asp) - however I am unsure how to interpret some of the wording.
e.g. Article 6.1:
Income derived by a resident of a Contracting State from immovable property (including income from agriculture, forestry or fishing) situated in the other Contracting State may be taxed in that other State.
Should I be interpreting this as:
- Income derived in the other Contracting State may be only taxed in that other State.
- Income derived in the other Contracting state may be also taxed in that other State.
I understand that either way I must declare the income on my Canadian tax return, I am just unsure whether I can then claim the exemption under line 256 as Exempt Foreign Income.