Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
960170
XXXXXXXXXX M.P. Sarazin
April 2, 1996
Dear Sir/Madam:
Re: Withholding Tax on RRSP
This is in reply to your letter dated December 13, 1995, wherein you requested confirmation that a one time lump sum withdrawal of funds out of a Registered Retirement Savings Plan ("RRSP") by a resident of Ireland would only be subject to a 15% withholding tax. You also requested confirmation that no tax would be withheld on RRSP funds transferred directly to a registered pension plan ("RPP") on behalf of the non-resident member. We apologize for the delay in responding to your letter.
By virtue of Article VI of the Canada-Ireland Income Tax Agreement, a lump sum withdrawal of funds from an RRSP by a resident of Ireland would be subject to a 15% withholding tax.
We also confirm that a direct transfer of amounts from an unmatured RRSP to an RPP for the benefit of the transferor would not be subject to any withholding tax. However, such transfer would have to be allowed under the terms of the RPP.
We trust the above comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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