Withholding tax (WHT) and fees are deducted from the gross withdrawal amount from a registered account as follows:
- 10% (5% in Quebec) on amounts up to $5,000
- 20% (10% in Quebec) on amounts over $5,000, up to $15,000
- 30% (15% in Quebec) on amounts over $15,000
For example: an Ontario resident gross partial withdrawal of $5,000 would result in partial deregistration fee of $56.50 (based on 13% tax on $50 fee for your province of residence ), and 10% withholding tax applied after the fee, resulting in withholding tax of $494.35 for a net amount of $4,449.15 being withdrawn for depositing into your bank or another account.
Note: Withholding tax does not apply to withdrawals for the Home Buyers Plan or Lifelong Learning Plan, or from a Tax Free Savings Account, but a partial or full deregistration fee will be applied.
A withdrawal request leaving less than the full deregistration fee amount will be considered as a full withdrawal and not partial withdrawal. For example: for an account with $200, a withdrawal request of $100 will be considered as a full deregistration request.