I believe it’s just the withholding tax for dividends. It doesn’t mention in the article if this would affect US stocks in RRSPs, which are exempt from the withholding tax.
Withholding taxes are taxes at the source of the income. If a country stipulates that a foreign investor is subject to a 30% withholding tax on dividends, it doesn’t matter the tax shelter status of your investment account - That money is never even going to land in your RRSP as it will be withheld at the source. If there is a tax treaty in place, you can apply afterwards to get some of your tax back.
I believe it’s just the withholding tax for dividends. It doesn’t mention in the article if this would affect US stocks in RRSPs, which are exempt from the withholding tax.
This sounds incorrect to me.
Withholding taxes are taxes at the source of the income. If a country stipulates that a foreign investor is subject to a 30% withholding tax on dividends, it doesn’t matter the tax shelter status of your investment account - That money is never even going to land in your RRSP as it will be withheld at the source. If there is a tax treaty in place, you can apply afterwards to get some of your tax back.
Am I missing a key function here?
Thank you for the info.