Sentences with phrase «canadian tax withheld»

Most countries have a foreign tax credit mechanism whereby your Canadian tax withheld at source is credited against your foreign tax payable on the income in your country of residence.

As I understand it, the dividends are subject to Canadian tax withholding.

Not exact matches

There are many I would love to own, but the extra 15 % Canadian withholding tax makes them hard to justify for me.

In these complex cases, the buyer may not be comfortable and may decide to submit the 25 % withholding to the Canadian tax authorities.

When the exit occurs, some buyers may decide to withhold 25 % of the non-Canadian investors» proceeds and then send these to the Canadian Tax authorities under Section 116.

While Lulu will issue you one of their own ISBNs, they withhold 30 % U.S. tax from Canadians in this case, unless you file a W - 8BEN form with them.

In a TFSA account, there is no Canadian tax implication but effectively, you are paying a withholding tax.

Yes, the 15 percent withholding tax rate is for Canadian residents holding US stocks or ETFs.

The withholding tax isn't so bad compared to the tax that the Canadian government will charge on that income.

Does anyone know if Canadian based mutual funds (invested in US equities) are subject to the US withholding tax?

However, if Canadian residents purchase US - based securities (such as Microsoft) in a TFSA, a 15 % withholding tax applies.

Lets say my US stock is giving me a 8.5 % yield and I have to pay a withholding tax of 15 % - this reduces the yield to 7.22 %, I know I can't claim back the 15 % but I am not further taxed by the Canadian Government for the 7.22 %.

Tax software adjusts the Canadian tax payable with the withholding tax already paTax software adjusts the Canadian tax payable with the withholding tax already patax payable with the withholding tax already patax already paid.

If you buy US - listed ETFs that hold Canadian securities, the fund itself will pay withholding taxes to CRA.

@jai: The TD Mutual Funds are Canadian mutual funds, therefore there is no direct withholding tax.

With some Canadian ETFs that hold international stocks, you'll pay two levels of withholding taxes: one levied by the stocks» native countries and a second by the U.S.

If holding U.S. - listed funds reduces your MER and foreign withholding taxes by 0.52 %, as Justin estimates, it would take two or three years to break even compared with simply using Canadian ETFs.

That Canadian withholding tax is generally 25 % but often reduced to 15 % if your country of residence has a tax treaty with Canada and if the withdrawals are periodic withdrawals, like from a RRIF.

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Holding a Canadian - listed ETF that in turn invests in U.S. stocks will result in a withholding tax drag of 15 percent but this penalty may be acceptable to many Canadians.

That's because many of its investors live in the U.S. and are subject to withholding taxes on dividends from Canadian firms.

@Germack: TD e-Series US Index Fund incurs the same 15 % withholding tax hit as the Vanguard S&P 500 ETF because it is a Canadian mutual fund.

The arrival of Vanguard in Canada, the response of iShares» Core ETFs and the response of BMO and other local players has meant Canadian investors need to consider ahead of MERs things like withholding tax treatment or U.S. estate taxes.

Foreign withholding taxes also occur with mutual funds and ETFs listed on Canadian or U.S. exchanges, which is why this topic was featured in the ETF stream of a BMO Global Asset Management conference on ETFs and mutual funds that I participated in last week in Chicago.

But Canadian ETFs that track the US and international indexes are dragged down by factors such as currency hedging, withholding taxes and poor sampling.

Assume an individual has $ 31,000 in a TFSA and it holds only Canadian equities (to avoid paying unrecoverable withholding taxes on foreign dividends).

Remember that outside registered plans, investors can get the withholding tax back if the assets are held directly in a Canadian trust.

Per my understanding, most Canadian stocks held in a tax - advantaged account aren't subject to Canada's foreign withholding.

If you've decided to include global REITs in your portfolio because of the diversification benefits they provide, you should also understand the foreign withholding tax differences between two of the product structures available to Canadian investors:

For example when buying Canadian listed ETFS (etc VUN / XUU — tracking the US Market or VIU / XEF — tracking the International Developed market) foreign withholding taxes on dividends come into play.

Bottom line: If a Canadian ETF simply holds a US - listed ETF, an additional tax drag is created due to withholding taxes that are not recoverable when the ETF is held within a RRSP account.

My return on Canadian equities should be higher than my return on US and International equities because the dividends are not subject to withholding taxes.

Wouldn't that mean that the withholding tax paid by yourself on the US ETF would be recoverable, but one paid by a Canadian ETF holding a US ETF wouldn't be (the tax is part of the MER expense)?

-- Canadian investors capturing exposure to global markets through ETFs listed in the US stock markets will experience additional leakage through withholding taxes.

The other thing I would suggest is to consider the tax implications of each investment and then balance them across multiple accounts; ie, the stuff that generates interest and that is taxed at the highest rates (Bonds, GICs, REITs) goes in your TFSAs, International stuff goes into your RRSPs so there's no withholding of foreign dividends, and stuff that generates Canadian dividends goes in your taxable account to get the Canadian gross up tax dividend.

Besides if the person that past away was in Canada there is a withholding tax as outlined in the canadian tax code.

It seems Canadian ETF providers are paying more attention to foreign withholding taxes these days.

What we've called «Level I» tax is levied by the countries where the stocks are domiciled (in this case, European and Asian countries), while «Level II» is an additional 15 % withheld by the US government before the US - listed ETF pays the dividends to the Canadian ETF.

If your U.S. stocks are held in a Canadian mutual fund or ETF, you will pay the 15 % withholding tax on the dividends even in an RRSP, and you won't be able to recover it.

If your blue chip stocks are U.S. dividend payers, there's another tax issue to understand: the U.S. imposes a 15 % withholding tax on dividends paid to Canadians.

I would opt for Canadian stocks over U.S. stocks in your TFSAs, as U.S. dividends will have 15 % withholding tax otherwise.

But when a Canadian ETF holds a US - listed ETF of international stocks (sometimes called a «wrap» structure) there may be two levels of withholding tax.

So when a Canadian ETF uses a wrap structure with an underlying US - listed ETF of international stocks, withholding taxes apply as follows:

Trying to avoid a relatively small foreign withholding tax while ignoring Canadian income tax is penny wise and pound foolish.

You should also understand that when Canadian ETF providers report performance, they do so after subtracting foreign withholding taxes: in other words, they do not presume these taxes will be subsequently recovered.

If you have a Canadian TFSA account, and then emigrate to HK, will the bank need to withhold the 25 % non-resident of Canada tax on the account (since you're now a non-resident of Canada)?

There are many I would love to own, but the extra 15 % Canadian withholding tax makes them hard to justify for me.

The tax rules provide that there is generally no Canadian withholding tax on interest paid to all arm's - length non-residents (regardless of their country of residence), with certain exceptions.

Canadian resident mutual funds, ETFs and pooled funds therefore have 15 per cent withholding tax on dividends and only receive 85 per cent of any dividends paid by the underlying U.S. stocks.

Canadian mutual funds or Canadian listed exchange traded funds (ETFs) that own foreign stocks are also subject to withholding tax on dividends earned in an RRSP.