Message Font: Serif | Sans-Serif
No. of Recommendations: 0

Oh. I did not know that. But then again between the RRSPs, RESPs, and TFSAs I don't do any after-tax investing (well, aside from the TFSA). But good to know, thanks.

Actually, the reciprocal tax treaties have not yet caught up with retirement accounts that receive special tax treatment. If you hold a foreign investment in such an account, the custodian generally will withhold taxes from dividends and capital gains on those foreign investments for the respective foreign government.

Also, most countries give a credit against their own income taxes for taxes paid to a foreign government on foreign investments. Unfortunately, taxes paid by a retirement account typically do not qualify for such credits because the retirement account typically is considered to be a separate entity from its owner.

Print the post  


The Great Foolish North
Canadian social and off-topic banter.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.