Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Holding Company
Canadian Tax and
Financial Information Home

What's New

Links & Resources

Site Map

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!
What's New
Personal Tax
Sales Taxes
Financial Freedom
Financial Planning
Registered Accounts
Real Estate
US Tax Tips
British Columbia
Atlantic Provinces
Federal Budget
Prov/Terr Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources
Glossary  -> Holding Company

Holding Company

A holding company is a private or public corporation which holds some or all of the shares in one or more private or public corporations.  The main benefit of a holding company is in the tax treatment of dividends received from the other corporations owned.

Dividends received by a Canadian corporation from another taxable Canadian corporation are not included in taxable income (Income Tax Act s. 112(1)).  When a Canadian controlled private corporation (CCPC) receives dividends from another taxable Canadian corporation with which it is not connected, it pays a special tax, called Part IV tax, at the rate of 33 1/3%.  The Part IV tax, and a portion of any Part I tax (regular income tax) paid on investment income, are recoverable via a dividend refund when taxable dividends are paid to shareholders.

Revised: October 26, 2023


Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  See What’s New, stay connected with by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.