Dividend Withholding Tax for Canadians

[Xerxes]

Been looking at different foreign tax jurisdictions since RBC allows foreign investments. 
 

For others to use as needed, each account shown below is the most optimal way to capture lowest tax on dividends. 

 

RRSP

Hong Kong companies

Singapore companies 

U.S. companies 

 

TFSA

Hong Kong companies

Singaporean companies 
 

Non-Registered 

European companies 

Japanese companies 

 

In short, withholding tax applies to European and Japanese assets, therefore better to keep them in non-registered account to at least get the Foreign Tax Credit as some offset. Depends also on the differential between Canadian income tax and withholding tax. 
 

For Hong Kong and Singaporean assets, one-tier tax applies, meaning that if the authorities apply tax at corporate level, none is levied on the shareholders (part of their legacy as financial hub). Therefore dividends are tax free. So best place to hold is in registered account to also shield them against Canadian income tax as well. Foreign Tax Credit does not apply as you do not pay foreign tax in a non registered account.  

Edited July 17, 2025 by Xerxes

[bizaro86]

Your table captures this, but the reason US companies are RRSP (not TFSA) is the Canada-US tax treaty exempts retirement accounts from withholding. So US dividends are totally tax free to an RRSP account but have non-recoverable withholding from the IRS in a TFSA.