RRSP payment to UK resident withholding tax?

Posted on 23. Jan, 2011 by Phil Hogan, CA in Cross Border Tax Q&A

Question

Answer

Hi XXX

Canada will withhold 25% of the RRSP payment at source. Unfortunately the withholding rate is not reduced by the Canada-UK tax treaty. Only when the payment is a “periodic pension payment” (RRIF or annuity) will the withholding rate be reduced to 0%.

If the $10,000 is more than 90% of your total worldwide income you could file a s.217 Canadian tax return to try and recover some of the 25% withholdings.

Hope that helps

Regards

Phil

Phil Hogan, CA
250-661-9417

___________________________________________________________________

If you would like to reach me to discuss a tax or accounting matter please call 250-661-9417 or email me at phil@philhogan.com.

The accounting and tax information provided on this website is for informational purposes only and does not represent binding professional advice. Appropriate tax treatment and advice will depend on an individuals particular circumstances and set of facts.

Tags: 25% withholding, non-resident, pension, rrsp, s.217 return, uk