# US Withholding Tax



## GeorgieMPorgie (Oct 21, 2010)

If I purchase a Canadian stock like Royal Bank (RY) on the NYSE in US funds. will taxes be withheld on the dividends?


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## Cal (Jun 17, 2009)

Not if you hold it in your RRSP.


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## GeorgieMPorgie (Oct 21, 2010)

What if it's not in my RRSP. Since it's a Canadian company I though I wouldn't have to pay the withholding tax?


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## humble_pie (Jun 7, 2009)

one can purchase canadian stocks on toronto & journal them over to US account in order to capture the primary USD dividends without any exchange fee from transfer agents, or to support the margin position of short USD options on that same stock;

or

one can purchase canadian stocks on US exchanges & keep them in USD accounts for the above reasons;

and

all will be well. There will be no withholding whether margin, cash or registered account. Furthermore, T5 tax slips will render the correct grossed-up dividend figures & the correct dividend tax credits. The only slight catch is that these T5s will be in US dollars, so the investor has to convert the currency for his canadian tax return.

this has been my experience.


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## CanadianCapitalist (Mar 31, 2009)

humble_pie said:


> all will be well. There will be no withholding whether margin, cash or registered account. Furthermore, T5 tax slips will render the correct grossed-up dividend figures & the correct dividend tax credits. The only slight catch is that these T5s will be in US dollars, so the investor has to convert the currency for his canadian tax return.
> 
> this has been my experience.


I was stumped by this question. Thanks for clarifying.


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