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Questrade - do I need to file W8-BEN

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  • Aug 25th, 2021 4:16 pm
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[OP]
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Feb 14, 2009
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York

Questrade - do I need to file W8-BEN

Hi All
I am trying to check on my Questrade account how much witholding tax was witheld on dividends from US equities. I am not sure where in Questrade I can check this. The "dividends charged" row in expenses table of the monthly statements state $0 charged. The reason I ask this is to know whether Questrade has registered me as a Canadian resident and charging me 15% witholding tax instead of 30%.
17 replies
Deal Addict
Jul 29, 2004
2877 posts
379 upvotes
No brokerage shows the dividends withheld.

I'm only going to have to deal with this in the next tax year but I would recommend you check with Questrade by calling them.

I quickly searched Google and found this: http://www.canadiancapitalist.com/check ... lding-tax/

That guy claims Questrade registers you as a CDN resident automatically if you gave them photo ID. So call and check and they can tell you.

TD Waterhouse had me automatically registered as a CDN resident, my Apple dividends came through fine.
[OP]
Newbie
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Feb 14, 2009
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York
Thanks. I had already read Canadian Capitalists article. Will call Questrade just to be sure. One more question. How do I get foreign tax credits for the witholding tax already paid for the purposes of filing tax return in Canada. If I don't know how much tax was with held how would I report it here http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 5-eng.html
Deal Addict
Jul 29, 2004
2877 posts
379 upvotes
SandsofTime wrote: Thanks. I had already read Canadian Capitalists article. Will call Questrade just to be sure. One more question. How do I get foreign tax credits for the witholding tax already paid for the purposes of filing tax return in Canada. If I don't know how much tax was with held how would I report it here http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... 5-eng.html
I think it should show on the tax slip (T5?) the brokerage sends to you after year end.
[OP]
Newbie
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Feb 14, 2009
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York
komal wrote: I think it should show on the tax slip (T5?) the brokerage sends to you after year end.
Thanks. Didn't know that. Will wait for the T5.
Banned
Feb 17, 2007
3190 posts
202 upvotes
Without filling out the W8-BEN, your withholding tax is 30% instead of 15% outside of your RRSP account.
Within an RRSP account, you do not need to fill a W8-BEN, because there is no withholding tax whatsoever (unless someone screwed up at the firm).
High fee actively managed mutual funds are bad for your wealth.
Deal Fanatic
May 31, 2007
5018 posts
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You get the money back on your tax slip when you file your taxes- you don't have to file the w8-ben.

I can confirm this as I have us dividend stocks with Questrade in a Non-reg.
Deal Fanatic
May 31, 2007
5018 posts
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Just checked my shares and only 15% was withheld. But again this portion is recoverable when you file your taxes. It could also be a wash since they treat that income is taxed like interest income- 100% of it against your marginal tax rate.
[OP]
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Feb 14, 2009
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York
Jungle wrote: Just checked my shares and only 15% was withheld. But again this portion is recoverable when you file your taxes. It could also be a wash since they treat that income is taxed like interest income- 100% of it against your marginal tax rate.
How did you check that only 15% was with held. I do not see any entry in the monthly account statements. Or is it that I have to do the calculations myself to verify, i.e. check what the company has paid as dividend and then see what has been deposited in my account.

Just got an email from customer support @ Questrade. Says if you have supplied a driver's license then you do not need to fill out W8-BEN. They'll change the tax code.
Deal Addict
Jul 29, 2004
2877 posts
379 upvotes
SandsofTime wrote: How did you check that only 15% was with held. I do not see any entry in the monthly account statements. Or is it that I have to do the calculations myself to verify, i.e. check what the company has paid as dividend and then see what has been deposited in my account.

Just got an email from customer support @ Questrade. Says if you have supplied a driver's license then you do not need to fill out W8-BEN. They'll change the tax code.
I actually re-checked and TD does tell you the withholding. My guess is Jungle has something similar.

For my Apple shares, TD has a separate transaction called WHXT which removes 15%.

I can see it either by checking my activity for the last month of through the paper statements.
Deal Fanatic
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Jun 19, 2009
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Scarborough
Sorry to necrobump this thread but do you need to file a W8-Ben if you're buying a Canadian ETF wrapper such as VUS/VUN? They hold VTI but are traded on the TSE.
Member
Feb 20, 2011
460 posts
92 upvotes
I have permanent residency from the US but am a Canadian citizen/resident. When I opened up my account with Interactive Brokers they asked if I was a US citizen/permanent resident and asked for my SSN and alien registration #. No witholding tax is taken from my US equity dividends/distributions now. I am wondering about the tax implications of this. Will I have to file a US return? How are these dividends treated from a Canadian tax standpoint?
Deal Expert
Feb 29, 2008
29087 posts
4776 upvotes
Montreal
red_skittles wrote: I have permanent residency from the US but am a Canadian citizen/resident. When I opened up my account with Interactive Brokers they asked if I was a US citizen/permanent resident and asked for my SSN and alien registration #. No witholding tax is taken from my US equity dividends/distributions now. I am wondering about the tax implications of this. Will I have to file a US return? How are these dividends treated from a Canadian tax standpoint?
For taxes, the general rule is once an American, always an American.
Newbie
Feb 15, 2016
4 posts
I am interested to re-raise this thread. I am Canadian, resident in the UK, Questrade customer with some Vanguard ETFs including VUN and VDU (among a few others). Questrade has admitted to a mess-up though. They were taking 15% withholding tax out of my account, immediately after every vanguard dividend distribution. This was in addition to the 15% that gets removed by way of US international withholding taxes, before the distribution even gets to shareholder's accounts, ie related to this: https://www.vanguardcanada.ca/advisors/ ... tm?lang=en

Im not sure what's right anymore. Should VUN, VDU, and similar ETFs reflecting international markets, be seeing an international withholding tax (15%) before the money is distributed to Canadian ETF holders' accounts, and then the broker taking another 15%?
Newbie
Aug 22, 2021
4 posts
I believe US do not withhold tax for US income in RRSP unless its wrapped in a Canadian fund - then it is 15%. Does a W8-BEN need to be filed for a TFSA? Wish it was more clearly shown what withholding taxes are being taken so that you can catch an issue.
Newbie
Aug 22, 2021
4 posts
I spoke to CI investing with similar questions as I have recently moved abroad. Yes, foreign withholding tax is taken before the Canadian broker even gets the distribution. They then remove the 15% withholding tax for canada. I see this is an old thread now! Would love to chat to u about your progress and chosen platforms as a UK resident, if you are still on this forum pm would be appreciated!

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