US Withholding Tax

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Question: I purchase Waste Connections on the TSX in CDN dollars & put it in my TFSA account. The dividend is paid in USD- am I subject to US withholding tax?

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Asked on December 31, 2025 9:26 am
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Private answer

No you are not. Withholding tax is based on where the company is domiciled, not what currency the dividend is paid out in.

Because WCN is domiciled in Canada, the dividend is not subject to withholding tax despite it paying in USD and 85%+ of the business being in the US.

I'll give you a situation where this would have changed in the past, and that would be when Encana moved its headquarters to the US from Canada in 2019. Now, when you hold Ovintiv, despite it being a Canadian listed company and ticker, you pay US withholding tax because it is US domiciled.

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Posted by Dan Kent
Answered on December 31, 2025 12:52 pm