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Dividend Withholding Tax in Canada

Explore Canada's dividend withholding tax, potential reductions through tax treaties, and how to secure refunds with CRA Form NR7-R.

Canada levies dividend withholding tax. The Canadian dividend withholding tax rate on distributions to foreign shareholders is 25%.

Double tax treaties and possible relief methods

Canadian dividend withholding tax may be reduced, or in some situations even eliminated, under Canada’s double tax treaties. Generally, the CRA can refund excess non-resident tax withheld if you complete and send the CRA Form NR7-R.

Statute of limitations

The statute of limitations in Canada is 2 years after the end of the calendar year in which the payer sent to the CRA the tax withheld. Depending on the tax treaty Canada has signed with your country or region of residence, the period during which you can get a refund may be longer.

More detailed information can be found here.

Jeroen van der Wal

Business Development Representative

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