Ontario -> Dividend tax credit

Ontario dividend tax credit

Ontario Taxation Act s. 13 for taxation years ending 2009 or later
Ontario Income Tax Act s. 4(3.4) for taxation years ending 2008 or earlier

Ontario's Taxation Act, which is for taxation years ending in 2009 or later, specifies the dividend tax credits for both eligible and non-eligible dividends as a percentage of the federal dividend tax credit.

Ontario's 2009 budget announced reductions in the corporate income tax rates beginning in 2010, and corresponding reductions in the dividend tax credit rate for 2010.  The following table shows the proposed changes to the dividend tax credit as a percentage of taxable dividends:

These changes are reflected in the tables below.

The Federal 2008 Budget reduced the gross-up rate and the dividend tax credit rate for dividends eligible for the enhanced dividend tax credit.  See the Enhanced Dividend Tax Credit article for details.  The change in the gross-up amount automatically applies to the provincial treatment of these dividends.  The following tables include the proposed changes in Bill 218, which are subject to legislative approval.