Non resident (Canadian), W8-BEN filed, want to know if I can recover the 10-15% withholding tax on the sale of US company stock?
Bad news/good news thing. No, you cannot recover the withholding from the US. The W8-BEN allows you to apply for reduced level of withholding consistent with Can-US Tax Treaty (15%). However, when you file your Canadian T1, make sure you claim the withholding as a Foreign Tax Credit on your return. It will lessen your Canadian tax payable by an equal amount in most cases.
Source(s):
CICA
You have to file a US tax return to recover any withholding. I don't know enough details to tell you whether you are allowed to recover the withholding or not.
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