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Quebec -> Dividend tax credit

Quebec Dividend Tax Credits

QC Taxation Act s. 767, s. 497

Quebec Eligible Dividend Tax Credit

The Quebec dividend tax credit rate is defined as a percentage of the grossed-up (taxable) dividend.

The Quebec 2018 Budget announced rate changes for the eligible dividend tax credit, effective March 28, 2018.  The eligible dividend tax credit rates are:

Quebec Dividend Tax Credit Rate for Eligible Dividends
Timing Gross-up
%
% of Grossed-up
Dividend
% of Actual
Dividend
2020+ 38% 11.70% 16.15%
2019 38% 11.78% 16.26%
Mar 28 to Dec 31/18 38% 11.86% 16.37%
2012 to Mar 27/18 38% 11.9% 16.422%
2011 41% 11.9% 16.779%
2010 44% 11.9% 17.136%
after Mar 23, 2006 to
Dec 31, 2009
45% 11.9% 17.255%
before Mar 24, 2006 45% 10.83% 13.5375%

Quebec  Non-Eligible Dividend Tax Credit

Although Quebec is not required to use the federal gross-up rates, they normally follow the federal legislation for this.  Their dividend tax credit rate is defined as a percentage of the grossed-up (taxable) dividend.

The Quebec 2021 Budget announced rate changes for the non-eligible, or small business dividends.  The rates are:

Quebec Dividend Tax Credit Rate for Non-Eligible Dividends
Timing Gross-up
Rate
% of Grossed-up
Dividend
% of Actual
Dividend
2022+ 15% 3.42% 3.93%
2021 15% 4.01% 4.61%
2020 15% 4.77% 5.49%
2019 15% 5.55% 6.38%
Mar 28 to Dec 31/18 16% 6.28% 7.28%
Jan 1 to Mar 27/18 16% 7.05% 8.18%
2016/2017 17% 7.05% 8.25%
2014/2015 18% 7.05% 8.32%
after Mar 23, 2006
to Dec 31, 2013
25% 8% 10%
before Mar 24, 2006 25% 10.83% 13.5375%

The Quebec 2021 Budget announced a decrease in the small business tax rate, to 3.2% effective for a corporation's taxation years ending after March 25, 2021, the day of the budget speech.  See Corporate Income Tax Rates.

For current tax brackets and complete rates see QC marginal tax rates table.

Revised: November 21, 2021

 

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