So I'm watching this closely as it looks like the us is moving in the direction of penalizing and discouraging foreign investors.

Debating moving all funds out of schd and arcc for a few years as this will essentially eat up the dividends via taxes

Curious what any other non American investors in the American markets make of this

https://www.forbes.com/sites/virginialatorrejeker/2025/05/22/one-big-beautiful-revenge-tax--hits-foreigners-from-unfair-tax-jurisdictions/

Also paying attention here and I am not seeing a lot on this, particularly around how or if this will impact our common vanguard index ETFS. Obviously there's some tax withheld currently but we get a foreign tax credit due to our tax treaty between Canada and the USA.

I'm out of the loop these days leaving tax practice behind me so I don't get updates but I will reach out to some former colleagues and let you know if they say anything.

I realize the yield on those ETF's like the S&P or total US is not high, but if you are starting to rack up a few million in them, it adds up suddenly but most of the return is coming via capital gains, but yes your SCHD ones id be wary of.

This post was edited by SBD on May 23 2025 08:52am

there's currently no us witholding at all in dividends earned in rrsp, these changes will override that so it is a substantial change for all canadians holding schd. thinking of moving schd to schg until they sort this out

holding in rrsp should circumvent this, rejig to hold us securities in rrsp and then canadian listed in non-reg/tfsa.

e; does the bill really target rrsps? i thought rrsps are part of a tax treaty.

This post was edited by Budgeting on May 23 2025 03:43pm

There's really little clarity what is deemed an unfair tax jurisdiction either.

Now given Trump's current stance apparently the entire world is unfair and he just blankets things so what unfair is and how unfair can be change one day to the next is pretty up in the air.

so as of now, the bill doesn't specifically target this exemption with rrsps - it could potentially if they choose to add language to override the existing tax treaty, but if its not addressed or directly brought up, its likely status quo.

the deferral of taxes are part of the current us-canada income tax treaty which this bill is supposed to override afaik https://1040abroad.com/blog/understand-the-us-taxation-of-rrsps-and-rrifs/

copy pasted the relevant bit from the paywall below when this topic came up a month ago in r canadianinvestor

https://www.theglobeandmail.com/business/article-proposed-republican-tax-change-would-lead-to-spike-in-costs-for/



given trumps antagonistic stance towards canada i don't believe any parts of this bill will be interpreted or implemented in favour of canadians who have us stocks in rrsps

This post was edited by duffman316 on May 23 2025 04:26pm

hopefully it doesn't.

Your markets have beat American this year