How to Update Canadian Tax Withholding Information
If you own a Canadian security, the income and dividends are subject to Canadian tax withholding. However, you can apply for a favorable tax treaty rate by filling out the appropriate form based on your situation.
Why do I need to file a specific Canadian tax withholding form?
Like many countries, Canada imposes a 25% withholding tax on investment income paid by Canadian companies to nonresidents of Canada. Beginning on January 1, 2013, the Canada Revenue Agency (CRA) increased the documentation Fidelity is required to get from customers to withhold at lower treaty rates.
What do I need to know?
The CRA allows Fidelity to apply a favorable withholding tax rate automatically, without asking you to complete a form, if you meet all of these conditions:
- You're a nonresident of Canada and you're an individual investor (or you have a trust with a trustee) and your address is in the U.S. or a country with which Canada has an applicable tax treaty.
- Fidelity has a complete permanent address on file for you that's not a PO Box or a "care of" address.
- Fidelity has no contradictory information on you in our files.
- Fidelity has no reason to suspect the information about you is incorrect or misleading.
The most common reason that Fidelity customers fail to qualify for favorable treaty rates is that there's a PO Box or a "care of" address on file with us.
If you do not meet the CRA conditions, you may still be eligible for a favorable withholding rate by certifying your eligibility or by applying for an exemption directly with the CRA.
You will need your personal information, including a legal street address, your Fidelity account numbers, and your Social Security or taxpayer ID number. You can apply for favorable treaty rates by filling out the appropriate form based on your situation:
- CRA Form NR301 (PDF): Use this form to declare eligibility if you are a nonresident individual (or a non-individual like a trust or corporation) taxpayer residing in a country where Canada has a tax treaty. Send this form to receive the reduced rate of tax or exemption on all or certain income.
- CRA Form NR302 (PDF): Use this form to declare eligibility if you are a partnership that's subject to tax under Part XIII of the Income Tax Act.
- CRA Form NR303 (PDF): Use this form to declare eligibility if you are a hybrid entity that will receive a payment subject to Part XIII of the Income Tax Act.
CRA Letter of Exemption Coversheet (PDF): Use this form if you have a non-prototype account. Please send it to Fidelity along with your exemption letter from the CRA.
Note: Fidelity BrokerageLink®/self-directed brokerage customers with account numbers that start with 650 through 654 do not need to file for an exemption. These accounts are exempt under the broader Fidelity exemption for retirement plans.
- CRA Tax Treaty Certification (PDF): Use this form if you are an agent or a nominee providing financial intermediary services as part of a business. This form certifies Canadian nonresident tax withholding.
Note: If you're not sure which form to use, please call us at 800-343-3548.
What to expect
You can either drop off your form at your local Fidelity branch or mail it to us at:
PO Box 770001
Cincinnati, OH 45277
Or you can overnight the form to this address:
100 Crosby Parkway KC1K
Covington, KY 41015
- When we receive your form, we will apply the appropriate tax withholding rate to your account.
- It takes about 5–7 business days to update the withholding information. You can go online to Fidelity.com or call us at 800-343-3548 to confirm your status.