While Canadian dividends paid to U.S. residents are subject to Part XIII tax, the Canada/U.S. tax treaty serves to reduce this rate from the statutory rate of 25 percent.

Question

Quizplus · Accepted Answer

The Canada/U.S. tax treaty does indeed serve to reduce the Part XIII tax rate on Canadian dividends paid to U.S. residents. The reduced rate varies depending on the type of dividend and whether the recipient is an individual or a corporation. For example, for individual recipients, the reduced rate is generally 15% for eligible dividends and 25% for non-eligible dividends.

While Canadian Dividends Paid to U