Beneficial owners recognised for tax purposes - Canada
The following types of beneficial owner are recognised for tax purposes in Canada for Canadian dividend distribution paid via Clearstream Banking:
Equities | |
Beneficial owner | Tax Rate |
Non-residents of a double taxation treaty country (DTT) where the applicable rates of Canadian withholding tax are the same as the rates specified in the Canada – United States Tax Treaty (that is, 15%) and who qualify as a non-resident as per the requirements stated in the Canadian Revenue Agency (CRA) Form NR301 | Tax treaty rates that are the same as the rates specified in the Canada – United States Tax Treaty (that is, 15%) |
Tax-exempt entities | 0% |
Residents of Canada
As of 1 January 2012, customers must refrain from holding, on their Clearstream Banking account, securities on behalf of beneficial owners (including themselves, if applicable) who are resident for tax purposes in Canada as defined by relevant Canadian laws and regulations. Such beneficial owners are not eligible for any relief at source or reclaim of withholding tax on income from Canadian securities via Clearstream Banking.
Please refer to the “Holding restriction and Investment regulation” section of the Clearstream Banking Market Profile - Canada.