Q&A: U.S. Withholding Tax

A reader wants to know if the 15% tax will apply on U.S. preferred shares in an RRSP.

 

Q – Could you please tell me if there is any withholding tax on U.S. preferred shares held in an RRSP. – David B.

 

A – No. U.S. source dividends are not subject to withholding tax if they are paid into an RRSP. But the 15% withholding tax does apply in a TFSA. – G.P.

Gordon-Pape_HR_DSC4847

 

Do you have a money question you’d like to ask Gordon? Find out how to submit it here and then check out our Money section regularly to see if it was chosen for a response. Sorry, we cannot send personal answers.