Foreign Equities - Tax Implications

[davidI]

What are the tax implications of investing in foreign exhanges? NYSE, LSE, ASX etc.

Do you ever need to file a tax return in that jurisdiction? What's the deal with witholdings? How do you claim your capital gains in Canada (ie. what forex rate?)

I've always stuck to the TSX and am starting to consider expaning my horizons.

BP shares may not be a bad buy at the moment as their market cap is off way more than that spill clean-up will cost.

[tenth]

No foreign tax return required as you are still a non-resident. Dividends and interest payments to you will result in a small tax (5-10%) being withheld on the payment to a non-resident, however the withholding will generate a foreign tax credit on your Canadian return.

For capital gains, the FX rates you use are the rates on the date of acquisition and disposition for each. Basically the amount you bought/sold for in CAD on the date of buying/selling. The FX gain/loss gets buried in the total capital gain/loss.

[civic_ek4]

if you invest in the US you will need a wform.