Sort of, but not exactly. And only sometimes. Albert Einstein is reported to have said "The hardest thing to understand is income tax".kasm wrote: ↑Feb 11th, 2019 9:42 amIs this US Withholding tax similar to taxes that are taken off your paycheck in the sense that whether they are withheld at the beginning or paid at tax time, in the end it's a wash because you still end up paying the same amount?
In other words, whether they are withheld on the distribution or not, you still end up paying the same come tax time?
If you really want to understand this refer to the links at the top of this thread.
In a non-registered account you get a tax slip that lists FWT as Foreign Non-business Tax Paid. You can claim that as a non-refundable tax credit. With non-refundable credits you must have other tax payable against which to claim the credit. And I believe there is a limit on the % refunded so for countries that have a high FWT you would not get all of it credited.
In registered accounts you don't get a tax slip therefore any FWT deducted is non-recoverable.