I was wondering if anyone owns the ADR form of Nestle (OTCMKTS:NSRGY) and can confirm what the foreign withholding tax on the dividend is when held in:
1. RRSP
2. TFSA
3. Non-registered account
I've read enough bits and pieces around the web and I think I understand what the foreign withholding tax is: 35% in a TFSA, 20% in a RRSP, and 20% in a non-registered account if applying the foreign dividend tax credit.
I think what I understand is that the Swiss apply a 20% tax on the dividend off the bat, which is only partially recoverable if one goes through a bit of a complicated process applying for a refund through the Swiss government.
Since the ADR is based in the US, sponsored through Citibank, there is another 15% foreign withholding tax applied by the US government, making the total 35% before appropriate reductions based on what account NSRGY is held in?
Anyways, would appreciate hearing from real world examples what the true foreign withholding tax on NSRGY is.