Dividend tax credit

Dividend Tax Credit
The amount a Canadian resident applies against their tax owing on the grossed up portion of dividends received from Canadian corporations.

Dividend Tax Credit: An income tax credit available to investors who earn dividend income through investments in the shares of Canadian Corporations.

Dividend Tax Credit
A procedure to encourage Canadians to invest in preferred and common shares of taxable, dividend-paying Canadian corporations. The taxpayer pays tax based on grossing up (i.e.

Dividend tax credit
Starting in 2006, an enhanced dividend tax credit is available for dividends received after 2005 from:
public corporations resident in Canada ...

Dividend tax credit
A tax credit given to Canadian investors on the dividends they receive from taxable Canadian corporations as an incentive to invest in those corporations.

Dividend tax credit
A dividend tax credit is a credit against taxes payable on dividends received. It has the effect of reducing the effective tax paid on dividend income and provides some relief from double taxation.

Dividends paid by Canadian corporations qualify for the dividend tax credit and are taxed at lower rates than other income.

If held in a taxable account, they are eligible for the dividend tax credit. The dividend is cumulative (if they skip a dividend due to financial difficulty, you should eventually get that dividend, if the company recovers).

To accomplish this, the Government proposes to introduce an enhanced gross-up and dividend tax credit (DTC) for eligible dividends received by eligible shareholders.

Individuals are then allowed a 20% dividend tax credit on the grossed-up dividend against total taxes payable.

Dividend fund - A mutual fund that invests in common shares of senior Canadian corporations with a history of regular dividend payments at above average rates, as well as preferred shares.
Dividend tax credit - An income tax credit available to ...

Dividends from Canadian companies - either in cash or shares - qualify for the Dividend Tax Credit and are taxed at lower rates than other income. Dividend income may be paid to mutual fund unitholders.

See also: Expense, Saving, Other income, Life insurance policy, Cash value