US withholding taxes on investments held in RRSP by non-resident of Canada

Question

Would dividends on investments held in US$ RRSP (common and preferred shares) be taxed (taxes withheld by US) if RRSP account holder becomes a non resident of Canada and resident of Croatia (not a resident of USA).

Thanks a lot,

Joe157.

Answer 1

No, US dividends in a canadian RRSP are exempted from US income tax. The fact that you left Canada is irrelevant, only the registered status of your RRSP is taken into account.

So as long as the money stays in your canadian RRSP there will be no income tax from the US, but when you retire, the financial institution in Canada will withhold taxes automatically. You will be treated as a emigrant who left Canada subject to disposition of property taxes.

To avoid double taxation in Croatia, if you still live there, you will need to talk to an accountant or lawyer in Croatia. There is a tax treaty between Croatia and Canada.