The Globe and Mail
February 2, 2026.
The drag on income from foreign withholding taxes is often not well understood, as the U.S.-Canada tax treaty exempts U.S. income, dividends and capital gains in an RRSP.
The rule is a strange tax quirk, says Diana Orlic, Senior Portfolio Manager at Richardson Wealth. “At first, it might seem like a non-issue, but the cost can add up over time.”
“We always try to find the strategies that make the most sense for clients that are the most tax efficient,” she says. “But at the end of the day, the decision does come down to what clients are comfortable with.”
