新叶投旅笔记
3 C's of life: choices, chances, and changes.
For ETFs:
https://www.vanguard.ca/content/dam/intl/americas/canada/en/documents/WithholdingTax_Guide-final.pdf
For Stock dividends:
In Canada, residents may encounter a 15% withholding tax on stock dividends in the following situations:
1. **Foreign Dividends from Non-Canadian Companies**: When a Canadian resident receives dividends from a foreign company (e.g., a U.S. or other international corporation), the foreign country may impose a withholding tax.
For example:
- **U.S. Dividends**: The U.S. typically withholds 30% on dividends paid to non-residents. However, under the Canada-U.S. Tax Treaty, this rate is reduced to 15% for Canadian residents, provided the proper documentation (e.g., IRS Form W-8BEN) is submitted to the payer or broker.
- Other countries may have similar tax treaties with Canada that reduce withholding tax rates to 15%, depending on the specific agreement.
2. **Dividends Held in Non-Registered Accounts**: If the foreign stock is held in a non-registered investment account, the 15% withholding tax (or the treaty rate) is generally applied by the foreign jurisdiction. The Canadian resident may be eligible to claim a foreign tax credit on their Canadian tax return to offset this withholding tax, reducing double taxation.
3. **Specific Tax Treaty Rates**: The 15% withholding tax rate applies to dividends from countries with which Canada has a tax treaty specifying this rate. The exact rate depends on the treaty terms, so it’s important to check the specific agreement between Canada and the country where the company is based.
### Exceptions and Notes:
- **Registered Accounts (e.g., RRSP, TFSA)**:
- **RRSPs**: U.S. dividends in an RRSP are exempt from the 15% U.S. withholding tax under the Canada-U.S. Tax Treaty, provided the account is properly registered with the payer.
- **TFSAs and RESPs**: These accounts do not receive the same exemption, so the 15% withholding tax (or other treaty rate) typically applies to foreign dividends.
(编注：曾经， 加大银行的投资顾问刚好说反， 说TFSA免， RRSP 不免。 当时因为觉得是他们的专业常识，我就没有去自己仔细核查， 导致我保持这个错误印象很久。 Lesson learned）
- **Canadian Dividends**: Dividends from Canadian companies paid to Canadian residents are not subject to withholding tax. Instead, they qualify for the Dividend Tax Credit and are taxed at the individual’s marginal rate.
- **Tax Reclaim**: If too much tax is withheld (e.g., 30% instead of 15% due to missing documentation), you may be able to reclaim the excess by filing the appropriate forms with the foreign tax authority (e.g., IRS Form 1040NR for the U.S.).
### Practical Steps:
- Ensure your broker has an up-to-date W-8BEN form to apply the reduced treaty rate for U.S. or other foreign dividends.
- Review the tax treaty between Canada and the country of the dividend-paying company to confirm the withholding rate.
- Consult a tax professional for complex portfolios or to optimize foreign tax credit claims.
If you have a specific stock or country in mind, I can help verify the applicable treaty rate or provide further details!
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As a Canadian buying U.S.-listed stocks or ETFs, you may be subject to a 15% withholding tax on dividends under the Canada-U.S. Tax Treaty, provided you’ve submitted IRS Form W-8BEN to your broker. The applicability of this tax depends on the type of security, whether it pays dividends, and the account in which it’s held (e.g., non-registered, RRSP, TFSA). Below, I analyze each of the securities/ETFs you listed to determine if the 15% withholding tax applies, focusing on their dividend-paying status and structure as U.S.-listed investments.
举例常见股：
### Securities/ETFs and Withholding Tax Analysis
1. **QQQ (Invesco QQQ Trust Series 1)**
- **Type**: U.S.-listed ETF tracking the NASDAQ-100 Index.
- **Dividend Status**: QQQ pays quarterly dividends (e.g., recent yield ~0.6–0.7% annually).
- **Withholding Tax**: Yes, the 15% U.S. withholding tax applies to dividends in non-registered accounts and TFSAs/RESPs, as these accounts are not exempt under the Canada-U.S. Tax Treaty. In an RRSP, dividends are exempt from withholding tax. You may claim a foreign tax credit for the withheld tax in a non-registered account on your Canadian tax return.[](https://www.suredividend.com/usa-tax-canadian-investors/)[](https://www.morningstar.ca/ca/news/254089/what-etf-investors-need-to-know-about-withholding-taxes.aspx)
- **Note**: The impact is small due to QQQ’s low dividend yield (e.g., ~0.1% of return lost to withholding tax).
2. **IBIT (iShares Bitcoin Trust ETF)**
- **Type**: U.S.-listed ETF tracking the price of Bitcoin.
- **Dividend Status**: IBIT does not pay dividends, as it’s a cryptocurrency-based ETF focused on capital appreciation, not income generation.
- **Withholding Tax**: No, the 15% withholding tax does not apply, as there are no dividends. Any gains from selling IBIT would be subject to Canadian capital gains tax (50% of gains taxable at your marginal rate) in a non-registered account, with no U.S. withholding tax.[](https://www.nasdaq.com/articles/pre-market-most-active-mar-3-2025-tsll-ibit-nvda-intc-sqqq-tsla-nio-bbai-f-unh-ionq-qbts)
- **Note**: TFSAs and RRSPs would also be tax-free on capital gains, with no withholding tax concerns.
3. **AMD (Advanced Micro Devices)**
- **Type**: U.S.-listed individual stock.
- **Dividend Status**: AMD does not currently pay dividends, focusing on growth rather than income.
- **Withholding Tax**: No, the 15% withholding tax does not apply, as AMD does not issue dividends. Capital gains from selling AMD shares are subject to Canadian tax rules (as above) but not U.S. withholding tax.[](https://www.suredividend.com/usa-tax-canadian-investors/)
- **Note**: Suitable for TFSAs or non-registered accounts if seeking to avoid withholding tax entirely.
4. **NVDA (NVIDIA Corporation)**
- **Type**: U.S.-listed individual stock.
- **Dividend Status**: NVIDIA pays a minimal quarterly dividend (e.g., ~0.03–0.04% yield annually, ~$0.04/share in 2024).
- **Withholding Tax**: Yes, the 15% withholding tax applies to the dividends in non-registered accounts and TFSAs/RESPs. In an RRSP, the dividends are exempt from withholding tax. The impact is negligible due to the low yield (e.g., ~0.005% of return lost). You can claim a foreign tax credit in a non-registered account.[](https://www.suredividend.com/usa-tax-canadian-investors/)[](https://www.nasdaq.com/articles/pre-market-most-active-mar-3-2025-tsll-ibit-nvda-intc-sqqq-tsla-nio-bbai-f-unh-ionq-qbts)
- **Note**: NVIDIA’s low dividend makes withholding tax a minor concern compared to capital gains potential.
5. **TSLL (Direxion Daily TSLA Bull 2X Shares)**
- **Type**: U.S.-listed leveraged ETF targeting 200% of Tesla’s daily performance.
- **Dividend Status**: TSLL typically does not pay regular dividends, as leveraged ETFs focus on daily price movements and may distribute capital gains or income sporadically, if at all.
- **Withholding Tax**: Likely no, as TSLL generally does not pay dividends. If it does distribute income (e.g., from underlying securities or cash holdings), the 15% withholding tax would apply in non-registered accounts or TFSAs/RESPs but not in RRSPs. Confirm with your broker for any distributions, as leveraged ETFs are complex.[](https://www.direxion.com/product/daily-tsla-bull-and-bear-leveraged-single-stock-etfs)
- **Note**: High volatility and risk; capital gains/losses dominate tax considerations over withholding tax.
6. **CONL (GraniteShares 2x Long COIN Daily ETF)**
- **Type**: U.S.-listed leveraged ETF targeting 200% of Coinbase Global’s daily performance.
- **Dividend Status**: CONL does not typically pay dividends, as it’s a leveraged single-stock ETF focused on price movements.
- **Withholding Tax**: Likely no, as CONL is unlikely to distribute dividends. If any income is distributed (e.g., from cash or underlying assets), the 15% withholding tax would apply in non-registered accounts or TFSAs/RESPs but not RRSPs. Check with your broker for distribution history.
- **Note**: Similar to TSLL, this is a high-risk investment; capital gains tax applies in Canada.
###
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### Key Considerations
- **RRSP Advantage**: Holding QQQ or NVDA in an RRSP avoids the 15% withholding tax on dividends, making it the most tax-efficient account for dividend-paying U.S. securities.[](https://www.suredividend.com/usa-tax-canadian-investors/)[](https://www.morningstar.ca/ca/news/254089/what-etf-investors-need-to-know-about-withholding-taxes.aspx)
- **TFSA/RESP**: These accounts face the 15% withholding tax on dividends from QQQ and NVDA, with no foreign tax credit available, reducing returns slightly.[](https://enrichedthinking.scotiawealthmanagement.com/2024/11/04/tax-planning-considerations-for-canadians-owning-u-s-assets/)
- **Non-Registered Accounts**: You can claim a foreign tax credit for the 15% withholding tax on QQQ and NVDA dividends, offsetting Canadian tax liability.[](https://www.moneysense.ca/columns/ask-a-planner/tax-planning-for-canadians-who-invest-in-the-u-s/)
- **Non-Dividend Securities (IBIT, AMD, MSTX, TSLL, CONL)**: These are generally free from U.S. withholding tax, making them simpler for tax planning, though capital gains tax applies in Canada.[](https://www.suredividend.com/usa-tax-canadian-investors/)
- **Form W-8BEN**: Ensure your broker has this form on file to secure the 15% treaty rate (instead of 30%) for any dividend-paying securities. Without it, you may need to file a U.S. tax return (e.g., Form 1040NR) to recover excess withholding, which can be costly.[](https://www.moneysense.ca/save/taxes/filing-taxes-u-s-investments-canada/)
- **Foreign Asset Reporting**: If your total foreign assets (including these U.S. securities) exceed CAD $100,000 in cost, you must file Form T1135 with the CRA, except for those held in RRSPs or TFSAs.[](https://www.moneysense.ca/columns/ask-a-planner/tax-planning-for-canadians-who-invest-in-the-u-s/)
### Recommendations
- **For QQQ and NVDA**: Hold in an RRSP to avoid the 15% withholding tax. If using a TFSA or non-registered account, the tax impact is small due to low yields, but consider a foreign tax credit in non-registered accounts.
小结： 避免15% Withholding Tax, 首选RRSP ， 其次是Cash账户， 最后是TFSA账户。
- **For IBIT, AMD, MSTX, TSLL, CONL**: These can be held in any account (TFSA, RRSP, non-registered) without withholding tax concerns, as they don’t typically pay dividends. Focus on capital gains tax strategy.
- **Leveraged ETFs (TSLL, CONL)**: Confirm with your broker whether any distributions occur, as these ETFs are complex and may occasionally distribute income.
- **Consult a Tax Professional**: Given the complexity of leveraged ETFs and potential T1135 filing, seek professional advice to optimize your tax strategy, especially for large portfolios.
If you have details about the account type (e.g., RRSP, TFSA) or specific concerns (e.g., expected holding period), I can tailor the advice further!
