US award

dekapp · Post by **dekapp** » Wed Jun 04, 2008 3:53 pm

Hello,
I am a canadian citizen living and working in Canada. I received an award from an American Corporation as part of a Design competition.

the monetory amount of the award is only $2000 USD.

Would there be a withholding tax of 30% on this amount before I receive it.?

Is there a way via the "treaty indicating info on double taxation" that this amount not be taxed in the USA but be taxed only in Canada.

By Article XXIV could I claim a lower % deduction than the 30%

Please advise

thanks

D

nelsona · Post by **nelsona** » Wed Jun 04, 2008 4:32 pm

The prize is subject to US withholding of 30%. This cannot be reduced. it is much like gambling winnings, except that there are no losses which you can write off against it.

The prize is likely ALSO taxable in canada. You can use the $600 US tax against the Cdn tax, using the foreign tax creit lines ofn your federal and provincial schedules.

dekapp · Post by **dekapp** » Wed Jun 04, 2008 9:02 pm

thank you