Atlantic Provinces -> Newfoundland & Labrador -> NL Dividend Tax Credit
NL Income Tax Act, 2000 s. 20(1)(b)
The NL 2014 Budget revised the dividend tax credit for dividends eligible for the enhanced dividend tax credit from 11% to 5.4% of the taxable dividend, effective for dividends received on or after July 1, 2014. This rate is still in effect.
From July 1, 2010 until December 31, 2013, the dividend tax credit for eligible dividends was 11% of the grossed-up taxable dividend, which at 38% gross-up was 15.18% of the actual dividend amount.
See the marginal tax rates for NL for current marginal tax rates for eligible and non-eligible dividends and other income.
NL Income Tax Act, 2000 s. 20(1)(a)
The NL 2016 budget revised the non-eligible dividend tax credit from 4.1% to 3.5% of the taxable dividend, for dividends received on or after July 1, 2016.
The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be reduced to 16% for 2018, and to 15% for 2019 and later years.
The current and past Newfoundland and Labrador rates for non-eligible dividends are shown in the following table. The 2018 and later rates will be in effect unless legislative changes are made by NL.
Revised: October 12, 2018
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca