{"id":9717,"date":"2023-02-21T09:22:47","date_gmt":"2023-02-21T14:22:47","guid":{"rendered":"https:\/\/www.effisca.com\/dividends-paid-to-a-non-resident-of-canada\/"},"modified":"2023-03-22T13:49:28","modified_gmt":"2023-03-22T17:49:28","slug":"dividends-paid-to-a-non-resident-of-canada","status":"publish","type":"post","link":"https:\/\/www.effisca.com\/en\/dividends-paid-to-a-non-resident-of-canada\/","title":{"rendered":"Dividends paid to a non-resident of Canada"},"content":{"rendered":"\n

Question: Now that I am a non-resident, what if my Canadian companies and my trust (which resides in Canada) pay me dividends?<\/p>\n\n

Answer: It should be noted that if one of the companies or the trust pays dividends to a non-resident, the non-resident tax must be deducted at source according to the tax rate applicable to the country of residence and only the net amount will be paid to the non-resident shareholder.<\/p>\n\n

Withholding taxes on dividends to a non-resident are a maximum of 25%. \nThe amount of the withholding tax (called Part XIII tax) must be remitted by the company \/ trust (regardless of the payer) before the 15th day of the month following the withholding otherwise huge penalties are applicable. \nFor example, a dividend of $100,000 paid on June 17, 2023 will be subject to a maximum withholding of $25,000 and this $25,000 must be paid to the CRA<\/a> before July 15, 2023 or face heavy fines. . \nAlso, NR4 slips must be issued before February 28 of the following calendar year (February 28, 2024 in our example).<\/p>\n\n

Consult us<\/a> to know the applicable withholding rate, the 25% rate can be reduced according to the tax treaties, they vary according to the country and the type of shareholder.<\/p>\n","protected":false},"excerpt":{"rendered":"

Question: Now that I am a non-resident, what if my Canadian companies and my trust (which resides in Canada) pay me dividends? Answer: It should be noted that if one of the companies or the trust pays dividends to a non-resident, the non-resident tax must be deducted at source according to the tax rate applicable […]<\/p>\n","protected":false},"author":16,"featured_media":9714,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[70,307],"tags":[263],"class_list":["post-9717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-tax","category-corporate-tax","tag-non-resident-of-canada-en"],"acf":[],"yoast_head":"\nDividends paid to a non-resident of Canada - Effisca<\/title>\n<meta name=\"description\" content=\"Special rules apply when a company or a trust pays dividends to a non-resident of Canada.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.effisca.com\/en\/dividends-paid-to-a-non-resident-of-canada\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dividends paid to a non-resident of Canada - 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