TFSA-(Holding US stocks )

Can one invest in US Stocks under TFSA and withholding tax on such foreign income.

One can have investments under TFSA account with US Stocks and dividends, income or capital gains are exempt from tax.

However unlike in RRSP withholding taxes are treated differently under RRSP and TFSA. Unlike and RRSP , TFSAs are not considered a pension trust inder Canada Income tax treatied and any foreign dividend will be subject to 15% withholding tax.
Foreign Tax credit also can not be claimed for the withholding taxed paid on investment income earned in TFSA.

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