Dividend withholding recovery

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Bubba Gums
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Joined: Tue Jul 15, 2014 7:20 am

Dividend withholding recovery

Post by Bubba Gums »

US resident, CDN-employment, CDN source dividends
Is it possible to recover the 15% treaty withheld tax on a cdn source dividend and include this income on my CDN return? Is this NR7 and if so any suggestion on how to describe this reason and obtain the details?
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Joined: Wed Oct 27, 2004 2:33 pm
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Re: Dividend withholding recovery

Post by nelsona »

No. Non-residents are to be taxed 15% flat rate. There is no provision for the non-resident to report Cdn dividends nor claim the dividend tax credit.

The 15% is to be included on the US tax return towards a credit on a passive income 1116.

NR7 would be to recover NR tax that was withheld at a higher than treaty-specified rate. Yours seems to have been withheld correctly.

And, before you ask, there is no "non-discrimination" provision that would cover this.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D
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