1099-INT tax withholding for CAD resident

[joeg]

What is the rate that it is supposed be to charged as I am doing 1040/1040NR and figuring out stuff?

I found conflicting amount for Article XI
One document https://www.irs.gov/pub/irs-trty/canada.pdf states not exceed 15%
Then this https://www.irs.gov/pub/irs-utl/tax-treaty-table-1.pdf states 0%
another search stated divd @15% and interest @10%
On the CRA site on the 'Non-resident tax calculator' https://www.canada.ca/en/revenue-agency ... aimer.html states 0%

[nelsona]

Bank interest is not reported on a 1040NR unless it is part of a business in US.

[joeg]

[quote=nelsona post_id=529925 time=1702819707 user_id=30]
Bank interest is not reported on a 1040NR unless it is part of a business in US.
[/quote]

Yes I am aware of "not effectively connected with a U.S. trade or business" statement. But was wondering what the % rate is.

[nelsona]

The withholding is zero.

[ND]

Bank interest is not reported on a 1040NR IF THE CORRECT WIHTHOLDING RATE WAS APPLIED is more accurate. b/c if wrong rate applied, IT IS REPORTED ON 1040NR SCH NEC


"Bank interest is not reported on a 1040NR"

[nelsona]

Only if it is OVER-withheld, of course, in order to be refunded. In this case ANY withheld interest.

From 1040NR NEC Instructions for line 2b (taxable interests)

If the interest is tax exempt under a treaty
but the withholding agent withheld tax,
report the interest on Schedule NEC
(Form 1040-NR), line 2. Use column d
and show 0% for the appropriate rate
of tax

You would then report the withheld tax as a tax payment, and it would be refunded you.

In any event, our poster was asking what the correct rate was, which is ZERO by Article XI(1)