CRA tax withholding for US citizen

[mhdousa]

Hi all - I got the following message from TD Ameritrade.  I'm a US citizen, holding Fairfax in a taxable brokerage account.  I assume I have to fill out for NR301, right?

 

We want you to know that effective

January 1, 2013, the Canada Revenue Agency (CRA) implemented new requirements

for receiving reduced tax withholding on Canadian-sourced income payments.

 

Our records of your holdings indicate that you may be affected by this change,

so we want you to know what to do to avoid possible additional tax withholding

on those payments.

 

    About the new requirement:

 

- Previously, your name and address information in our files allowed us to

apply a reduced withholding rate to your Canadian-sourced income payments. 

 

- Under the new regulations, however, we will need to have a Canadian

non-resident tax form(s) on file in order for you to be eligible for the reduced

rate.

 

- Please note: Unless we receive the appropriate documentation, we will need to

withhold the full statutory tax rate of 25% on your Canadian-sourced income.

To ensure you receive the appropriate tax withholding, we urge you to act

promptly.

 

- Note: If you have an account with more than one account holder, such as a

Joint Account, each account holder must complete a separate form.

 

    What you need to do to avoid additional tax withholding:

 

    1.  Choose the appropriate form for your particular circumstances, as

different forms apply to different situations. Please consult with your tax

advisor to determine which form to use. The forms include:

 

- NR301 – Declaration of Eligibility for Benefits under a Tax Treaty for a

Non-resident Taxpayer. 

 

- NR302 – Declaration of Eligibility for Benefits under a Tax Treaty for a

Partnership with Non-Resident Partners. 

 

- NR303 – Declaration of Eligibility for Benefits under a Tax Treaty for a

Hybrid Entity.

[JEast]

Just sign the form and send back in. They already withheld the 15% and the form is really for next year.

 

Cheers

James

[mhdousa]

Just sign the form and send back in. They already withheld the 15% and the form is really for next year.

 

Cheers

James

 

Thanks, James.