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Treaty withholding matrix

What this is

If you move abroad, how much does Canada still tax?

When a non-resident receives Canadian-source income (pension, RRSP withdrawal, dividends, interest), Canada withholds Part XIII tax. Default is 25%. Tax treaties reduce that for specific countries + income types.

  • ·Default Part XIII rate: 25% on most cross-border payments to non-residents.
  • ·Treaty countries get lower rates: typical periodic pension 15%, dividends 5-15%, interest 0-10%.
  • ·Lump-sum RRSP withdrawal almost never gets a treaty benefit, stays at 25%.
  • ·You must file the NR74 form to confirm residency status before treaty rates apply.
CountryCodeRateNotes
United StatesUSA15%In force · Canada-US Tax Convention (1980, amended 2007 protocol). Articles XVIII (pensions), X (dividends), XI (interest). Domestic interest withholding 0% under treaty.
United KingdomGBR15%In force · Canada-UK Tax Convention (1978, 2014 protocol). Articles 17 (pensions), 10, 11.
GermanyDEU15%In force · Canada-Germany Tax Convention (2001). Articles 18 (pensions), 10, 11.
PortugalPRT15%In force · Canada-Portugal Convention (1999, in force 2001). Article 18 pension rate capped at 15%.
SpainESP15%In force · Canada-Spain Convention (1976, 2014 protocol).
ItalyITA15%In force · Canada-Italy Convention (2002 update).
MexicoMEX15%In force · Canada-Mexico Convention (2006). No SSA, so OAS portability not guaranteed past 6 months.
AustraliaAUS15%In force · Canada-Australia Convention (1980, 2002 protocol).
New ZealandNZL15%In force · Canada-New Zealand Convention (2012).
SwitzerlandCHE15%In force · Canada-Switzerland Convention (1997, 2010 protocol).
NetherlandsNLD15%In force · Canada-Netherlands Convention (1986, 1997 + 2013 protocols).
IrelandIRL15%In force · Canada-Ireland Convention (2003).
FranceFRA25%In force · Canada-France Tax Convention (1975, 1995 protocol). Article 18 (pensions taxed in source state at full 25%).
JapanJPN25%In force · Canada-Japan Convention (1986). Pensions taxed in source state at default Part XIII rate.
Costa RicaCRI25%Signed, not in force · No bilateral tax treaty in force. Default Part XIII 25% applies. No SSA: OAS stops after 6 months absence unless 20-year residency met.
PanamaPAN25%In force · Canada-Panama Convention (2010, in force 2013). Pension at source rate. No SSA.
BahamasBHS25%Signed, not in force · No bilateral tax treaty. Default Part XIII 25% on all cross-border payments.
IndiaIND25%In force · Canada-India Convention (1996, in force 1997). Portfolio dividends 25% (15% for 10%+ corporate holdings), interest 15%. Periodic-pension relief varies, confirm Article 18. SSA in force 2015.
ThailandTHA25%In force · Canada-Thailand Convention (in force 1985). Dividends 15%, interest 15%. No social security agreement, so OAS stops after 6 months absence unless 20-year residency is met.
PhilippinesPHL25%In force · Canada-Philippines Convention (in force 1977). Dividends 15%, interest 15%. SSA in force 1997.
VietnamVNM25%In force · Canada-Vietnam Convention (in force 1998). Dividends 15%, interest 10%. No social security agreement.

Educational. Not financial advice. Destination country’s own tax is NOT included, verify with a cross-border CPA before moving. Some treaties have a “tie-breaker” rule for dual residence.

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Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.