Q&A With Gordon Pape: U.S. Stocks And The Tax Man

How can we know which U.S. stocks are exempt from withholding tax in RRSPs?

Q – Is there a simple way to know which U.S. stocks will tax dividends paid into a Canadian RRSP? – Paul P.

A – If the company is a corporation based in the U.S., dividends paid to a Canadian RRSP will not be subject to withholding tax. However, if it is structured as an ADR (offshore companies) or as a master limited partnership, different tax rules apply. Check with your broker before you buy. – G.P.