Effective November 27, 2021, the deferred sales charge and low load sales charge purchase options will no longer be available for purchase on Sun Life Global Investments mutual funds. Switches between funds of the same sales charge purchase option will be permitted.

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TFSA held by non-residents Max

If a Canadian resident has an existing TFSA and then becomes a non-resident, the funds can remain in the TFSA; however the client cannot make contributions to the TFSA while a non-resident. If a non-resident does make a contribution, the Canada Revenue Agency (CRA) will impose a special tax equal to 1% of the contribution. This tax is imposed on a monthly basis until such time as the individual makes withdrawals equal to that contribution or if earlier, the individual becomes a resident of Canada.

Non-residents cannot accrue contribution room.

If a non-resident has made excess TFSA contributions he/she will be subject to 1% tax per month.

Withdrawals can be made while the plan holder is a non-resident. Any withdrawals made while a plan holder is a non-resident will be added back to the holder's unused TFSA contribution room in the following year, but will only be available when the holder subsequently resumes Canadian residency status.

Non-residents will not be taxed on any earnings in their TFSA or on withdrawals. However, any payments made to a non-resident beneficiary, from a deceased holder's TFSA, is required to be included in the beneficiary's income to the extent where the payment exceeds the value of the TFSA at death. Non-resident tax will be deducted on this excess.