TSX:BPF.UN - Post by User
Comment by
Benji 2000on Sep 08, 2021 11:22am
115 Views
Post# 33824802
RE:RE:RE:TFSA
RE:RE:RE:TFSA Tax Treaty with the United States
In the case of eligible investments listed on an American stock exchange, there is a big difference between RRSPs and TFSAs, since the tax treaty between Canada and the United States grants a US tax exemption for investments held within RRSPs and RRIFsFootnote1 but not TFSAs.
This agreement provides that income earned by Canadian pension plans (including RRSPs or RRIFs) on investments in US entities are free from tax in the United States. By contrast, this exemption does not apply in the case of a TFSA since such an account is not treated as the equivalent of a pension plan. A 15% tax will be deducted at source in the United States on US-based dividends paid to a TFSA.
It should be noted that, under the tax treaty, interest income and capital gains earned on US securities by any person residing in Canada shall be taxable only in Canada.
That's why i ask for...Thanks again !!