UK resident wants to withdraw RRSP


Hi, My wife and I has leave in UK for the last 6 years and are declare non
canadien resident. We both have RRSP. We want to take our RRSP and found out
about withholding tax.
Do you know how much it is and if it can be claimed back? Is there an
agreement between the two contry? Thank you

david ingram replies:

The withholding tax for a non-resident of Canada is 25% of the amount
withdrawn from an RRSP.

Usually that is the end of it.

If, on the other hand, you were only taking out $30,000 or less and had no
other income for the year, it is possible for you to file a return under
section 217 of the Canadian Income tax act and pay tax at the marginal tax
rate with full exemptions.
This might result in your saving about $1,500.

However, if your income in the UK is over $25,000 Canadian it is unlikely
there would be any savings.


Trackback URL for this entry:

No trackback comments for this entry.