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The short answer
Canadian dividends paid to a non-resident are subject to 25% Part XIII withholding, and the Canada–Nigeria agreement reduces this to 15%, or 12.5% where the shareholder is a company holding at least 10% of the voting power. To get the lower rate, give your broker or the payer Form NR301; if 25% was withheld anyway, reclaim the excess on Form NR7-R within two years.
The default rate and the treaty rate
CRA guide T4058 says Canadian payers must withhold non-resident tax at 25% on certain Canadian-source income, and dividends are on the list. CRA guide T4061 confirms the 25% applies to dividends unless the Act or a tax treaty reduces it. Article 10 of the Canada–Nigeria agreement, signed in Abuja in 1992, sets the reduced rates:
| Who receives the dividend | Maximum Canadian tax under the agreement |
|---|---|
| An individual resident in Nigeria (portfolio shares) | 15% |
| A Nigerian company holding at least 10% of the voting power of the paying company | 12.5% |
| No treaty claim on file | 25% (domestic rate) |
For most Nigerians who moved back with a brokerage account full of Canadian bank, telecom or pipeline shares, the relevant rate is 15%.
Getting the 15% applied at source
- Tell your broker you are non-resident. The CRA's Leaving Canada page says you are required to notify Canadian payers and financial institutions. Brokers then apply non-resident rules.
- Complete Form NR301, the declaration T4061 lists for a non-resident claiming treaty benefits, with your Nigerian address and tax details.
- Check the first dividend after the change. The statement should show 15% withheld, not 25%.
- Keep the NR4 slip, which the payer must issue by the end of March, showing gross dividends and tax withheld.
Each broker sets its own rules for clients who become non-resident. Ask yours before you leave Canada rather than after.
Worked example (illustrative figures only)
A Port Harcourt resident receives C$4,000 of dividends from Canadian shares in a year.
| C$ | |
|---|---|
| Gross dividends | 4,000 |
| Withheld at 25% (no NR301 on file) | 1,000 |
| Treaty tax at 15% | 600 |
| Excess to reclaim on NR7-R | 400 |
T4058 describes the NR7-R refund application and its two-year limit. Withholding is generally a final tax for non-residents, so there is no Canadian return to file just for dividends.
Dividends from your own Canadian company
Many founders keep a Canadian corporation running after moving to Lagos and pay themselves dividends. The 12.5% rate in Article 10 is for a company shareholder holding at least 10% of the voting power; an individual who owns all the shares personally is still an individual and falls under the 15% rate. If the shares are held through a Nigerian holding company that controls 10% or more of the votes, the 12.5% rate may apply to dividends paid to that company, but the structure brings its own Nigerian and Canadian questions. The Canadian company, as payer, is the one that must withhold, remit by the 15th of the following month and issue the NR4, and T4061 says a payer that fails to withhold is liable for the tax plus a 10% penalty.
If the corporation keeps paying you a salary as well, that is employment income with different rules; ask a cross-border adviser before mixing the two.
Shares inside a TFSA or RRSP
- TFSA: the CRA TFSA guide RC4466 says you can keep a TFSA after becoming non-resident and its earnings are not taxed in Canada, but you build no new room and contributions while non-resident attract a 1% monthly tax.
- RRSP: dividends inside the plan are not paid to you, so no withholding applies until you withdraw. Withdrawals by non-residents are subject to 25% unless a treaty reduces it.
Nigeria may see these differently. Ask a Nigerian adviser how TFSA and RRSP income is treated once you are resident there.
Nigeria's tax on the same dividends
As a Nigerian resident you are taxed on worldwide income. PwC's summary of Nigerian personal income tax says foreign tax already paid may be credited against Nigerian tax, so the 15% Canada withholds, evidenced by the NR4, is the starting point for that credit. Over-withholding is not Nigerian-creditable tax; reclaim it from the CRA.
PwC's income determination summary also lists an exemption for dividends brought into Nigeria in convertible currency through government-approved channels into an account with an approved bank. If you rely on it, keep the bank's inflow record and the NR4 for the same dividends together, and confirm with a Nigerian adviser that your route qualifies.
What to check first
- Broker informed of your non-residence and Nigerian address.
- NR301 on file before the next dividend date.
- Statements show 15%, not 25%.
- NR7-R lodged within two years for any over-withholding.
- NR4s kept with your Nigerian return papers.
Related: the NR4 slip for Canadian interest and what the Canada–Nigeria treaty covers. This is general information, not tax advice.
Where Pryme fits
Dividends paid in Canadian dollars can be moved home and converted when it suits you. A Pryme account holds NGN alongside USD, GBP and EUR, and Swap shows the rate and fee before you approve.
Questions people ask
What is the Canada–Nigeria treaty rate on dividends?
15% for individuals, and 12.5% for a company holding at least 10% of the voting power, under Article 10 of the agreement. The domestic rate without a claim is 25%.
How do I stop my broker withholding 25%?
Tell the broker you are non-resident and give it Form NR301 declaring your eligibility for treaty benefits.
Can I get back the extra 10% already withheld?
Yes, by applying on Form NR7-R within two years, as described in CRA guide T4058.
Do I file a Canadian return for dividends after moving to Nigeria?
Generally no. Non-resident withholding on dividends is usually the final Canadian tax.
Sources
- CRA T4058, Non-Residents and Income Tax 2025 (modified 20 Jan 2026) · accessed Oct 2026
- CRA T4061, NR4 – Non-Resident Tax Withholding, Remitting and Reporting (modified 22 Sep 2026) · accessed Oct 2026
- Canada–Nigeria tax agreement (signed Abuja, 4 Aug 1992), Global Affairs Canada treaty database · accessed Oct 2026
- CRA RC4466, Tax-Free Savings Account (TFSA) Guide for Individuals · accessed Oct 2026
- PwC Worldwide Tax Summaries, Nigeria – Taxes on personal income (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries, Nigeria – Income determination (reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.