Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/
RRSP payment to UK resident withholding tax?
23 January 11 
Cross Border Tax Q&A Question
Hello,
I moved from Canada in 2003 and left my RRSP in Canada. I’m planning on withdrawing $10,000 from the RRSP this year. How much Canadian tax will they withhold?
Thanks for your time.
XXXXX
Answer
Hi XXX
Canada will withhold 25% of the RRSP payment at source. Unfortunately the withholding rate is not reduced by the Canada-UK tax treaty. Only when the payment is a “periodic pension payment” (RRIF or annuity) will the withholding rate be reduced to 0%.
If the $10,000 is more than 90% of your total worldwide income you could file a s.217 Canadian tax return to try and recover some of the 25% withholdings.
Hope that helps
Regards
Phil
Phil Hogan, CA
250-661-9417
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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