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Saskatchewan Dividend Tax Credits

Saskatchewan Dividend Tax Credit for Eligible Dividends

SK Income Tax Act, 2000 s. 32

Saskatchewan's eligible dividend tax credit rate is defined as a percentage of the Federal gross-up amount.

Saskatchewan's 2017 Budget announced that the dividend tax rate as a percentage of the taxable dividend would be reduced in 1/4 point increments each year from 2017 to 2020.  However, this was revised with their November 6, 2017 Bill 84, which received Royal Assent on November 7, 2017, which revised the 2018 rate from 38.132% of the gross-up (10.5% of the taxable dividend) to 39.95%, or 11% of the taxable dividend, for 2018 and subsequent taxation years.

Saskatchewan Dividend Tax Credit for Non-eligible Dividends

SK Income Tax Act 2000 s. 32

Saskatchewan's Bill 89, The Income Tax (Affordability) Amendment Act, 2022, which was tabled on November 2, 2022, delays the increase of the non-eligible dividend tax credit by 1 year, in concert with the delay in increase of the small business corporate income tax rate.

Saskatchewan's non-eligible dividend tax credit rate is defined as a percentage of the Federal gross-up amount.

The Saskatchewan table of marginal tax rates shows the marginal tax rates for eligible and non-eligible dividends and other income.

Revised: July 31, 2023