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Stock impact report

What the TFSA Fine Print Says About Holding U.S. Stocks [Globe and Mail, The (Toronto, Canada)]

UiPath, Inc. Class A (PATH) 
Capital gains on U.S. stocks are completely tax-free in Canada when held in a TFSA. But there is a catch that often catches investors off guard, and it involves dividends. The U.S. government charges a 15% withholding tax on dividends paid to Canadian investors, and your TFSA offers zero protection against it. The smart way around it is to fill your TFSA with high-quality U.S. growth stocks that pay little or no dividends. UiPath NYSE:PATH ) is one name worth putting on that list today. The 15% withholding tax explained The U.S. Internal Revenue Service offers a tax break to Canadians only if U.S. dividend stocks are held in a retirement account, such as a Registered Retirement Savings Plan (RRSP). Under the Canada-U.S. tax treaty, dividends paid by American companies to Canadian investors are subject to a 15% withholding tax. In a regular taxable account, you can often recover that amount as a foreign tax credit on your Canadian return. Inside a TFSA, this recovery optio Show less Read more
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