Investing

Algonquin Power & Utilities Corp. Corporate Units (AQNU:US)

  • Last Updated:
  • Apr 6th, 2022 3:12 am
[OP]
Newbie
Apr 1, 2022
3 posts

Algonquin Power & Utilities Corp. Corporate Units (AQNU:US)

Hello, would anyone know if there are withholding taxes on AQNU dividends if held in a RRIF or RRSP?
5 replies
Newbie
Jul 28, 2019
90 posts
57 upvotes
I'm not familiar with this ticker, but I am with AQN and AQN.TO. My guess is it will be the same.

Been covered a few times in previous threads but if on US Side (AQN) the dividend is natively paid in USD. There is no withholding taxes on a Canadian domiciled company in TFSA.

If an American company (Microsoft, Apple) etc that is an American company you pay 15% withholding taxes in TFSA. NOT IN RRSP.

You should be able to reach your conclusion based on that.
Member
Jan 9, 2017
376 posts
546 upvotes
BoomBoom50 wrote: Hello, would anyone know if there are withholding taxes on AQNU dividends if held in a RRIF or RRSP?
I have AQN in my RRSP USD account. No withholding tax.
Member
Nov 14, 2006
499 posts
483 upvotes
Montreal
BoomBoom50 wrote: Hello, would anyone know if there are withholding taxes on AQNU dividends if held in a RRIF or RRSP?
I read the same article from SA on AQNU conversion to common and chance of collecting higher dividend. All my US holdings in RRSP or RRIF are not subject to the 15% withholding on dividend distribution. The only additional loss is the mark up on FX spot rate at time of exchange.
[OP]
Newbie
Apr 1, 2022
3 posts
dropby,

Yeah I get that. I was referring to AQNU:US which only has been around since June last year. There is no equivalent in Canada so I was wanting to know what the deal is with this one tax wise if held in Canada. The yield is over 6% which could be an attractive one to own providing there are no withholding taxes.
[OP]
Newbie
Apr 1, 2022
3 posts
cchenzz,

Yeah same here, I have no withholding taxes on my US stocks which I hold in my RRIF (formerly RRSP). I got burned once when I held EPD briefly in my RRSP in 2008. I found out the hard way that US MLPs get taxed heavily on dividends made to non-US residents. I was shocked when I had a 35% non-recoverable withholding tax come off the dividend at source. The withholding tax is now 37.5%, still non-recoverable no matter which Canadian account its held in. By chance would you know if AQNU is a C-Corp? If it is there's no withholding tax on dividends in Canadian RRSPs or RRIFs.

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