RRSP: cash-out and move it to Japan?

[5lions]

Just a heads up, your children don't need to be 'registered' to be considered Canadian citizens legally. If you were born in Canada (and haven't renounced your citizenship), your children automatically are Canadian citizens regardless of where they are born. It doesn't matter if you have gone through the process of obtaining a citizenship document.
On a related note, they can be denied entry into Canada if they don't have Canadian passports...

An important caveat, the parent must be a first-generation Canadian for this to be true.

Applying for Canadian citizenship certificates and passports is very worthwhile as it will give your children more options in the future.

The Ontario government struck down that clause, actually. It was challenged (rightfully, IMHO) for effectively creating two classes of citizens, those who can pass on their citizenship to their heirs, and those who cannot.
As of 2024, children of Canadians who are born outside of Canada can now pass on Canadian citizenship to their children.

[Tsumitate Wrestler]

Just a heads up, your children don't need to be 'registered' to be considered Canadian citizens legally. If you were born in Canada (and haven't renounced your citizenship), your children automatically are Canadian citizens regardless of where they are born. It doesn't matter if you have gone through the process of obtaining a citizenship document.
On a related note, they can be denied entry into Canada if they don't have Canadian passports...

An important caveat, the parent must be a first-generation Canadian for this to be true.

Applying for Canadian citizenship certificates and passports is very worthwhile as it will give your children more options in the future.

The Ontario government struck down that clause, actually. It was challenged (rightfully, IMHO) for effectively creating two classes of citizens, those who can pass on their citizenship to their heirs, and those who cannot.
As of 2024, children of Canadians who are born outside of Canada can now pass on Canadian citizenship to their children.

Bill C-71 hasn't even had a second reading. It is not law.

It is a hopeful sign though.

[Butterball]

I've been thinking about this topic's headline a lot lately. And maybe I should be moving my RRSP to Japan and putting my funds in NISA to grow tax free. Here is what I have come up with pros and cons.

...

You should call the CRA help line to ask about this -- it's a pain in the ass with the time difference and waiting time but I believe you can call collect. The couple of times I had to call the people I talked to really knew what they were talking about and had clear answers for things that I never could have understood properly by digging through the online documents.

I do believe you're misunderstanding the tax situation, though. I'm not the person who can be trusted to correct your understanding, but I believe RRSP withdrawals are taxed as regular income. So you don't want to withdraw a whole lot of money all in one year. Capital gains aren't taxed; that's what RRSPs are for. The 25% is a withholding tax, which means it will be deducted automatically when you withdraw so that you can't skip the country without paying. Then you need to fill out a tax return to figure out how much you really owed on that income, and you'll hopefully get a partial refund. But don't believe what I just told you; I might be dreaming it all up. Check with the CRA.

[Wilbur]

You should call the CRA help line to ask about this -- it's a pain in the ass with the time difference and waiting time but I believe you can call collect. The couple of times I had to call the people I talked to really knew what they were talking about and had clear answers for things that I never could have understood properly by digging through the online documents.

I do believe you're misunderstanding the tax situation, though. I'm not the person who can be trusted to correct your understanding, but I believe RRSP withdrawals are taxed as regular income. So you don't want to withdraw a whole lot of money all in one year. Capital gains aren't taxed; that's what RRSPs are for. The 25% is a withholding tax, which means it will be deducted automatically when you withdraw so that you can't skip the country without paying. Then you need to fill out a tax return to figure out how much you really owed on that income, and you'll hopefully get a partial refund. But don't believe what I just told you; I might be dreaming it all up. Check with the CRA.

Thanks for the reply and information about calling the CRA it has helped me out a lot. I called them yesterday morning after reading your message, it was a good 40min wait before I talk to someone. Sure glad you gave me the heads up about calling collect. The person I talked to said like in the documentation online that withdrawal of any portion of an RRSP is taxed according to your residency. So for non residents of Canada like me I pay automatically 25% and that is done by the financial institutions at withdrawal. This is my final obligation of tax in Canada to do with the RRSP. And now this is what you helped me with finding out. I then have the option of filling a income tax return for Non-Residents and Electing under Section 217, to try and see if I can get this tax lowered.

Now I gotta do some more calculations and see if I'm going to transfer funds in the near future or when I retire. I'm still thinking that withdrawal now and having a better interest rate lower fees in NISA is the better option. Maybe I'll split the difference and leave half in Canada and the other half bring to Japan. I will see in 20 years which was the best option.