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Atlantic Provinces   ->   Newfoundland & Labrador -> NL Dividend Tax Credit

Newfoundland & Labrador Dividend Tax Credits

NL Eligible Dividends

NL Income Tax Act, 2000 s. 20(1)(b)

The NL Income Tax Act defines the eligible dividend tax credit rate as a percentage of the taxable (grossed-up) dividend.

Bill 15, An Act to Amend the Income Tax Act, 2000 No. 2 increased the eligible dividend tax credit rate from 5.4% to 6.3%, effective January 1, 2022.

     NL Dividend Tax Credit Rate for Eligible Dividends
Year Gross-up
Rate
% of Grossed-up
Dividend
% of Actual
Dividend
2022+ 38% 6.3% 8.69%
2014 Jul - 2021 Dec 38% 5.4% 7.45%
2013 - 2014 Jun 38% 11.0% 15.18%

See the marginal tax rates for NL for current marginal tax rates for eligible and non-eligible dividends and other income.

NL Dividend Tax Credit for Non-Eligible Dividends

NL Income Tax Act, 2000 s. 20(1)(a)

The NL Income Tax Act defines the non-eligible dividend tax credit rate as a percentage of the taxable (grossed-up) dividend.

Bill 15, An Act to Amend the Income Tax Act, 2000 No. 2 reduced the non-eligible dividend tax credit rate from 3.5% to 3.2%, effective January 1, 2022.

The current and past Newfoundland and Labrador rates for non-eligible dividends are shown in the following table.

     NL Dividend Tax Credit Rate for Non-Eligible Dividends
Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2022+ 15% 24.53% 3.2% 3.68%
2019 - 2021 15% 26.83% 3.5% 4.03%
2018 16% 25.38% 3.5% 4.06%
2016 Jul - 2017 Dec 17% 24.09% 3.5% 4.10%
2016 Jan-Jun 17% 28.22% 4.1% 4.80%
2014 Jul-Dec & 2015 18% 26.88% 4.1% 4.84%
2014 Jan-Jun 18% 32.78% 5% 5.90%
2013 25% 25% 5% 6.25%

Revised: September 14, 2021

 

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