Dividend tax credit
The dividend tax credit is a non-refundable tax
credit which applies when Canadian dividends are included in income.
Foreign dividends do not qualify for the dividend tax credit.
The dividend tax credit for dividends received after 2005 depends on the type of corporation paying the dividend. Most dividends
received from Canadian public corporations are eligible for the enhanced
dividend tax credit (eligible dividends), while most dividends received from Canadian-controlled
private corporations (CCPCs) are eligible for the regular, or
small business dividend tax credit. The two types of Canadian dividends
are usually referred to as "eligible" or "non-eligible"
dividends.
Enhanced Dividend Tax Credit
Enhanced
dividend tax credit - the basics, rates changing starting in 2010
Table of Federal &
Provincial/Territorial enhanced dividend tax credit rates
Why is there sometimes a
negative
marginal tax rate for dividends for lower income tax brackets?
Government
benefits could be reduced by treatment of dividends after 2005.
Dividend Tax Credit for Non-Eligible, or Small Business
Dividends
Small
business dividend tax credit rates
Topics Related to Both Eligible and Non-Eligible
Dividends
Comparison of taxes payable in each province on different levels of
eligible dividends, non-eligible dividends, and interest income.
Alternative minimum tax
as it relates to Canadian dividends
Transfer dividend income
to a spouse - In some circumstances, Canadian dividend income may be included in the income
of either spouse.
Dividend tax credit rates
for 2004 & 2005
Revised: April 23, 2010
