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Québec Dividend Tax Credit

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Québec -> Dividend tax credit

Québec Dividend tax credit

QC Taxation Act s. 767, s. 497

Enhanced dividend tax credit

The rates for dividends eligible for the enhanced dividend tax credit are:

Québec Dividend Tax Credit Rate on Eligible Dividends
Timing	Gross-up %	% of Grossed-up Dividend	% of Actual Dividend
before Mar 24, 2006	45%	10.83%	13.5375%
after Mar 23, 2006 to Dec 31, 2009	45%	11.9%	17.255%
2010	44%	11.9%	17.136%
2011	41%	11.9%	16.779%
2012	38%	11.9%	16.422%

Small business dividend tax credit

The rates for non-eligible, or small business dividends are:

Québec Dividend Tax Credit Rate on Small Business Dividends
Timing	% of Grossed-up Dividend	% of Actual Dividend
before Mar 24, 2006	10.83%	13.5375%
after Mar 23, 2006	8%	10%

The small business corporate tax rate was reduced to 8% effective March 24, 2006. Prior to that, it was reduced to 8.5% effective January 1, 2006.

Revised: June 20, 2010

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