# US EQUITY DIVIDEND and WITHHOLDING TAX



## BCD (Apr 30, 2009)

Has any body claimed withholding taxe on US equities dividend received?
I got account in Scotia i trade and dividend received from Mcdonald they deducted withholding Tax.


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## mfd (Apr 3, 2009)

BCD said:


> Has any body claimed withholding taxe on US equities dividend received?
> I got account in Scotia i trade and dividend received from Mcdonald they deducted withholding Tax.


I have....


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## FrugalTrader (Oct 13, 2008)

BCD said:


> Has any body claimed withholding taxe on US equities dividend received?
> I got account in Scotia i trade and dividend received from Mcdonald they deducted withholding Tax.


Withholding tax goes against any taxes owning on foreign dividends. You should claim it.

However, I think the rules are different for a TFSA. I think the withholding tax is lost. Can anyone verify?


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## stardancer (Apr 26, 2009)

Since gains, losses, interest, growth, etc cannot be used from TFSA earnings, I would assume the foreign taxes paid are also unuseable.


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## msj (May 3, 2009)

Since a TFSA is not a "retirement" account (unlike RRSP accounts) we get no protection under the CAN/US tax treaty to exempt these accounts from withholding taxes. 

As such, investments in TFSA's will have withholding taxes deducted and you will not be able to claim the foreign taxes on your personal tax return. 

One should invest accordingly between RRSP's and TFSA's.


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