The Canadian Government Imposes a Withholding Tax of 15 Percent

The Canadian government imposes a withholding tax of 15 percent on a dividend paid by a Canadian corporation to a U.S. individual. The withholding tax will be creditable on the individual's U.S. tax return as an "in lieu of" tax.
Because Canada imposes an income tax, the withholding tax is creditable as an "in lieu of" tax.