Canadian Stocks on US Market - Dividend Tax Credit

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kukucanuck
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Canadian Stocks on US Market - Dividend Tax Credit

Post by kukucanuck »

Are Dividends from Canadian stocks bought on US markets eligible for Dividend Tax Credit (Canadian Residents/Citizens)

For example, if one buys TD or BCE in US funds in US market, would the dividend be eligible for favorable treatment, similar to these stocks bought on TSX? Typically, Dividends on US stocks are more or less taxed as interest for Canadian residents.

Would a 15 percent tax be withheld when dividends are paid out?
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AltaRed
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Re: Canadian Stocks on US Market - Dividend Tax Credit

Post by AltaRed »

Whether Canadian stocks are traded on the TSX or NYSE, they are the same Canadian stocks (same CUSIP number). Thus, yes to the dividend tax credit, and no US withholding tax. The NYSE is simply another exchange on which to trade Canadian stocks.
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