Fat.rtf Direct

The term refers to the formula used to calculate tax deductions for Foreign Accrual Property Income (FAPI) . When a Canadian taxpayer earns passive income through a Controlled Foreign Affiliate (CFA) , they are taxed on that income in Canada as it is earned. To prevent double taxation, the Canada Revenue Agency (CRA) allows a deduction based on the foreign taxes already paid.

Here is a deep dive into the world of fat.rtf (FAT/RTF) and why it matters to businesses and individuals with foreign investments. The Core Components fat.rtf

For certain investment income, the RTF for corporations was reduced from 4.0 to 1.9 . The term refers to the formula used to