Do I pay taxes on foreign securities?
We are not able to provide financial, tax or legal advice however, we always try to provide general information to help you determine the next step. If you receive interest, dividends or capital gains from investments outside Canada, the equivalent Canadian dollar along with the adjusted cost base value must be reported on your Canadian tax return and will be taxed accordingly.
A withholding tax may be deducted from your foreign investment income. However, you may be able to claim a foreign tax credit to prevent double taxation if your investments are held in a non-registered account. If your foreign investments are held within a registered account, the tax credit is not available. There may be further considerations regarding the treatment of tax depending on which type of account you hold your investments within.
Speak with a tax professional for advice that fits your personal financial circumstances. You may also contact the Canada Revenue Agency (CRA) for further tax related questions.