I have been approached by a Non Resident (Norway) who worked years ago on a construction project. During that time, he built up a RRSP investment in excess of $100,000. He went back to Norway years ago but the investment still remained in Canada. During 2025, he withdrew it and a regular T4RSP slip was issued reporting the withdrawal and income taxes deducted of 30% by the financial institution.
Does anyone have experience as to what this person’s income tax obligation is?
You need to check the tax treaty with Norway to see what the tax rate is. Most of the treaties have RRSP withdrawals at 25% for lumpsum withdrawal and 15% for annuities ie regular monthly payments. Send a letter to the international tax office explaining that the client is a resident of Norway and not Canada for tax purposes and that you want PXIII tax assessed and the difference of 5% refunded to him. Enclose a copy of the T4RSP slip. He can claim the 25% tax he paid as foreign taxes on his Norway return to the extent he is taxable on the income in Norway.