Canadian Tax and
Financial Information
Quebec Dividend Tax Credit

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Quebec -> Dividend tax credit

Quebec Dividend Tax Credit

QC Taxation Act s. 767, s. 497

Quebec  Enhanced Dividend Tax Credit

The rates for dividends eligible for the enhanced dividend tax credit are:

     Quebec Dividend Tax Credit Rate for Eligible Dividends

Timing Gross-up
% of Grossed-up
% of Actual
2012 and later 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

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.  Although Quebec is not required to use the reduced gross-up rates, they normally follow the federal legislation for this.

The legislation for the Quebec non-eligible dividend tax credit sets the rate at 7.05% of the taxable dividend.

The rates for non-eligible, or small business dividends are as per the following table, unless Quebec tables legislation to change the rate:

     Quebec Dividend Tax Credit Rate for Non-Eligible Dividends

Timing Gross-up
% of Grossed-up
% of Actual
2019+ 15% 7.05% 8.11%
2018 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 small business corporate tax rate was reduced to 8% effective March 24, 2006.  Prior to that, it was reduced to 8.5% effective January 1, 2006.  See Corporate Income Tax Rates.

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

Revised: October 24, 2017

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