How do dividends impact my annual contribution limit?

There are no limits on the amount of dividends you receive in your TFSA account. Dividends and any growth on your investment do not impact your annual contribution limit.

Do I pay tax on foreign dividends in my TFSA?

Yes, unfortunately with some foreign dividends you do. In your transaction history, you will see a line item with the dividends being paid into your account and then a further line item with the dividends tax being charged against them.

What goes on in your Tax-free Savings account is exempt from local-based taxes (Capital gains, Dividends withholding tax, securities transfer tax).

However, in the case of a dividend paid by a dual listed company, where the dividends tax is withheld by the foreign company paying the dividend, those dividends are not exempt from the dividends tax associated with them and will be deducted from your account.

EasyEquities takes care of this on your behalf and there is no actioned required by you.