david ingram says:
> In re-reading my reply here, I realized that I left out tax on any dividends or interest received. Under Article X of the Canada / Korea Tax Treaty, Canada receives 15% tax on any interest paid out by Canaccord Capital to his account. My reply was based upon his ownership of mining stocks which on the Vancouver Stock Exchange rarely pay out dividends or interest. There is no tax on the sale of publicly traded shares unless the seller owns 50% of the company.
> This applies to just about any other country with a tax treaty. If there is no tax treaty, the withholding rate would be 25% on interest and dividends.
> The original question and answer follows:
> Hello, I'm a registered non-resident Canadian living and
> working in South Korea. I've been a non-resident for
> about 8 years now and about 3 years ago I opened up an
> account at Canaccord Capital, Vancouver so I could build
> up a portfolio of mining stocks. Hypothetically, if I was to
> make a million dollars and cash out, my Canadian
> stockbroker said he could send the million dollars (minus
> his commissions of course) to me in Korea without taking
> any tax off. My broker said he could send the full amount
> but he couldn't answer any questions related to my tax
> liability in Canada. So my question is, 'do I have to pay
> taxes on profits made on Canadian stock exchanges as a
> Canadian non-resident living in South Korea. If I have to
> pay substantial taxes, is there anything I can legally do to
> reduce these taxes? Thank you.
> david ingram replies
> Non-residents of Canada do NOT pay tax on profits in the trading of Publicly
> Traded shares on Canadian Stock Exchanges.
> Non-residents of the US do NOT pay tax on profits in the trading of publicly traded shares on US stock exchanges UNLESS they are US citizens..
> However, if you were to be participating in seed shares of a private corporation, the profits would be taxable.
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