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Saskatchewan-> Dividend tax creditSaskatchewan dividend tax creditSK Income Tax Act, 2000 s. 32
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| Year | 2009 | 2010 | 2011 | 2012 |
| Gross-up % | 45% | 44% | 41% | 38% |
| enhanced dividend tax credit as a % of | ||||
| gross-up | 35.44% | 36.00% | 37.83% | 39.95% |
| taxable (grossed-up) dividends | 11% | 11% | 11% | 11% |
| actual dividends | 15.95% | 15.84% | 15.51% | 15.18% |
As a result of the reduction in the gross-up rate, Saskatchewan announced in their 2009 budget that they are revising the structure of their enhanced dividend tax credit (DTC), to keep the DTC rate at 11% of taxable dividends. The revisions are reflected in the above table.
Non-eligible dividends
Non-eligible, or small business dividends, which are grossed-up 25%, have a dividend tax credit rate of 30% of the gross-up amount. This results in a dividend tax credit rate of
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6% of the taxable (grossed-up) dividend |
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7.5% of the actual dividend |
The Saskatchewan 2011 Budget announced a reduction in the dividend tax credit rate for non-eligible dividends, as a result of the reduction in the corporate tax rate for small businesses. The dividend tax credit rate, as a percentage of the taxable dividend, is
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5% for 2011 |
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4% for 2012 |
Revised: March 24, 2011