Your US Investment income will have a 15% withholding tax at source and the full dividend income would be taxed as "regular" income when in Canada. The dividend income would be added to your income and the 15% is used as a tax credit toward your CDN taxes.
Dividend income from CANADIAN sources recieves a very generous tax treatment. You may want to consider the merits of converting your $USD income investments into $CDN and buy Canadian dividend paying investments in Canada.
In addition, you may well find yourself getting tripped up with US state Securities Acts. Technically, when you move to Canada, a US financial institution is not suppose to allow you to maintain an investment account as it violates securities rules. Its not a situation that cannot be worked around but does represent a bit of a pain. Don't ASSUME you can mantain your current investment relationships. Investigate before making your move.
You would file tax forms in Canada and - assuming you are a US citizen - tax forms in the US although it is highly unlikely you will have to pay any taxes to the IRS. NONETHELESS, you still have to file with them.
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Tax Question--Dividend Income
Moderator: Mark T Serbinski CA CPA