Dividend Withholding Taxes

6743 Views 6 Replies 5 Participants Last post by Jon202, Jul 7, 2009

krackerjack121

Discussion Starter · Jul 4, 2009

Hi all,

THis is my first post. Just started recently coming to the forum. I sure like what I am seeing so far. Keep up the good work.

I have a quick question for all of you out there. I just finished reading Josh Peters - The Ultimate Dividend Playbook and I believe that I am going to be devoloping a stragety that revolves around dividend paying stocks. Anyways when I was reading, he talked about the withholding taxes that you have to pay when you buy a stock from outside your home nation. (in his case the US) And he said that pretty much without exception every nation has a withholding tax. But at the end he said there was one country that doesn't have a withholding tax for the US based on some tax treaty anyone who invests from the States in a British based company that pays dividends doesn't have to pay a withholding tax from the UK.

So, my question is does anyone know if Canada has a similar tax treaty with different countries. I guess that this would also be outside of tax deffered holidngs as well. (RRSP's etc.)

Thanks,

Rocky

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CanadianCapitalist

· #2 · Jul 4, 2009

Canadian residents pay a 15% withholding tax to US in taxable accounts; no withholding tax in RRSPs.

Not sure about Canada-UK tax treaty. You may want to read up on it here:

http://www.fin.gc.ca/treaties-conventions/treatystatus_-eng.asp

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Sampson

· #3 · Jul 4, 2009

krackerjack121 said:
So, my question is does anyone know if Canada has a similar tax treaty with different countries. I guess that this would also be outside of tax deffered holidngs as well. (RRSP's etc.)

I know Canada does NOT have a tax treaty in place with France or Switzerland.

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krackerjack121

Discussion Starter · #4 · Jul 7, 2009

Thanks for the info CC and Sampson.

ROcky

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leslie

· #5 · Jul 7, 2009

Your decision to buy dividend stocks was most probably influenced not only by the book but also by the incessant promotion of dividends in the media.

I am not against them, but I am against misrepresentations of the truth. Before you buy into the orthodoxy take some time (quite a lot) and go through the different points against dividends.

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krackerjack121

Discussion Starter · #6 · Jul 7, 2009

Leslie,

I have been doing a bunch of reading online, in books and elsewhere and I feel that this is the most relevant strategy that I want to use. I have read a couple of Gordon Pape's books, Peter Lynch's books and others. I believe that for me I will be pursuing this investment strategy. That being said I thank you for the link and I will have to check it out as all sides of a strategy need to be looked at to form a good decision.

Thanks,

Rocky

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Jon202

· #7 · Jul 7, 2009

The power of finding companies with increasing dividends and reinvesting them:

http://www.fool.com/investing/dividends-income/2009/06/13/psst-heres-my-secret-formula.aspx

http://www.contrarianprofits.com/ar...-money-buying-the-world’s-safest-stocks/18411

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