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HI
I am Canadian citizen who retired in Canada in August 2023, earning a pension from the former employer's RPP starting in January 2024. I became non-resident shortly after retiring and I have an existing personal RRSP established long time before becoming non-resident. I still have some good RRSP room to contribute, per the recent CRA assessment. Earning Canadian income (the periodically paid pension) which is obviously subject to withholding tax, would qualify me to deduct (from the withholding tax owed in 2024 on the pension income) any further contributions to the RRSP made in 2024 ?
Thank you
VMV
Hi VMV,
You cannot reduce the non-resident withholding tax deducted from pension payments by contributing to your RRSP. You are correct that a non-resident can contribute to his RRSP providing he has available room. A better option is to file a Section 217 Non-Resident Tax Return to get a refund of the tax withheld.