Withdrawing RRSPs by non-resident in non-treaty country
QUESTION:
Regarding the subject line, I am aware that CPP can be withdrawn at reduced tax rates by a non-resident in a non-treaty country (ie. Panama).
1) Can the same reduced tax rate apply to RRSP/RIF withdrawals as well?
2) Would they also be based on Cdn applicable income tax rates?
thank you.
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david ingram replies:
You may make the same election for RRSPs under Section 217 of the Canada Income Tax Act. For list of all items, read page 5 at
http://www.cra-arc.gc.ca/E/pub/tg/t4145/t4145-06e.pdf
Note that if you are receiving OAS (Old Age Security) out of the country, you have to (likely) file from T1136 whether you file under section 217 or not.
All the facts for section 217 can be found in this link http://www.cra-arc.gc.ca/E/pub/tg/t4145/t4145-06e.pdf
Section 217 is designed to ensure that you will not pay more tax livi9ng outside the country than you would if you lived in Canada. Section 217 will never be better if your total income exceeds aboutr $43,000 Canadian but 'can' be better at incomes under $40,000 because you get the benefit of a personal deduction amount.
Regarding the subject line, I am aware that CPP can be withdrawn at reduced tax rates by a non-resident in a non-treaty country (ie. Panama).
1) Can the same reduced tax rate apply to RRSP/RIF withdrawals as well?
2) Would they also be based on Cdn applicable income tax rates?
thank you.
------------------------------------------------------------
david ingram replies:
You may make the same election for RRSPs under Section 217 of the Canada Income Tax Act. For list of all items, read page 5 at
http://www.cra-arc.gc.ca/E/pub/tg/t4145/t4145-06e.pdf
Note that if you are receiving OAS (Old Age Security) out of the country, you have to (likely) file from T1136 whether you file under section 217 or not.
All the facts for section 217 can be found in this link http://www.cra-arc.gc.ca/E/pub/tg/t4145/t4145-06e.pdf
Section 217 is designed to ensure that you will not pay more tax livi9ng outside the country than you would if you lived in Canada. Section 217 will never be better if your total income exceeds aboutr $43,000 Canadian but 'can' be better at incomes under $40,000 because you get the benefit of a personal deduction amount.
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