Should you make a lump sum withdrawal from your RRSP as a non-resident, you are required to pay a flat 25% withholding tax to the CRA on the amount, which you will most likely never recover. A more tax efficient method would be to first turn your RRSP into an annuity such as RRIF. Depending on the tax treaty that the Canada has with your country of residence, the withholding tax on the annuity payment can be reduced to 15%.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
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