Q&A: U.S. Withholding Tax

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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.


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