Personal Finance Topics / Macroeconomic Trends and Risks
No. of Recommendations: 2
Not sure where else to post this:
https://www.edwardjones.ca/ca-en/market-news-insig...While Canada has a tax treaty with the United States, under the proposed legislation, Canadians and Canadian business could see a reduced realized after-tax return on U.S. income producing assets.
Under the current treaty, the withholding tax rate on individuals is reduced from 30% to 15% in certain accounts such as a non-registered account, tax-free savings account or first home savings account. For a registered retirement savings plan or registered retirement income fund, the withholding tax is reduced to 0%. Canadian businesses also see a benefit when earning dividends from their U.S. subsidiaries. Currently, the withholding tax rate that they pay is 5%.
The proposed bill would see the withholding tax applied to individuals and businesses increase by 5% per year until the rate reaches 20% above the statutory rate of 30%.tecmo
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No. of Recommendations: 1
until the rate reaches 20% above the statutory rate of 30%.
Major incentive for them to invest ANYWHERE ELSE but the U.S.
No. of Recommendations: 4
The proposed bill would see the withholding tax applied to individuals and businesses increase by 5% per year until the rate reaches 20% above the statutory rate of 30%.
Interesting
My cursory reading suggested that it allowed for an increase in tax rate to a maximum of 20% above what it would otherwise have been in a given situation, not 20% above a 30% "norm". Reading legislative text is of course not exactly something to try quickly. They are professionals, I'm not.
Speaking of professionalism, I suppose etiquette, if not law, would demand the US formally withdraw from the Canada-US tax treaty (and all the others) rather than simply flagrantly violating it.
Jim
No. of Recommendations: 0
am far more confident predicting gop\trump etiquette.
but disruption of foreign tax treaties at some point before 2028 was rather easy to expect.
how will HNW in trump's circle respond, and can they possibly get in the highly influential last word prior to an emotional decision? will congress care?
No. of Recommendations: 0
withdraw from the Canada-US tax treaty (and all the others) rather than simply flagrantly violating it.
Spankee holds he is "special" and can do exactly as he chooses. If somebody else is holding his money (such as a possible tax refund), then things get "interesting"--because they can use those funds to offset his violation(s) of tax treaty(ies).
