Beneficial owners recognised for tax purposes – Canada
The following types of beneficial owner are recognised for tax purposes in Canada:
Debt securities | |
Beneficial owner | Tax rate |
All (No withholding tax is deducted on interest from Canadian debt securities held in Clearstream Banking) The only exceptions are in the event that a debt security distributes taxable dividends and in the very rare cases of related non-residents not dealing “at arm’s length” with the issuer and for Participating Interest, in which cases 25% withholding tax is applicable and may be applied upon request from the client. | 0% |
Equities | |
Beneficial owner | Tax rate |
Residents of a Double Taxation Treaty (DTT) country who qualify as non-resident according to Form NR301 (General) | DTT |
Resident of a DTT country who qualify as non-resident according to Form NR302a (Partnerships) | DTT |
Resident of a DTT country who qualify as non-resident according to Form NR303a (Hybrid entities) | DTT |
Non-resident tax-exempt entities | 0% |
Canadian residents | 25% |
a. Partnerships (Form NR302) and Hybrid entities (Form NR303) are not considered eligible and must apply to reclaim withholding tax via the standard refund procedure instead.
Trust instruments | |
Beneficial owner | Tax rate |
Residents of a Double Taxation Treaty (DTT) country who qualify as non-resident according to Form NR301 (General) | DTT |
Resident of a DTT country who qualify as non-resident according to Form NR302a (Partnerships) | DTT |
Resident of a DTT country who qualify as non-resident according to Form NR303a (Hybrid entities) | DTT |
Non-resident tax-exempt entities | 0% |
Canadian residents | 25% |
a. Partnerships (Form NR302) and Hybrid entities (Form NR303) are not considered eligible and must apply to reclaim withholding tax via the standard refund procedure instead.