Sentences with phrase «dividend tax credit»

If invest in bond index funds or bond index tracking ETFs will I be eligible for dividend tax credit?

Canadian exchange traded funds are also eligible for the Canadian dividend tax credit, although this only applies to Canadian ETFs that pay dividends.

The federal dividend tax credit reduces the federal tax that is due.

But for efficiency sake, with the new enhanced dividend tax credit, I believe the studies show that dividends outside an RRSP is more efficient.

In particular, changes effective this month to the way dividend tax credits are accounted for may now be playing out on the futures and swaps market.

The gross - up and dividend tax credit mechanisms are intended to maintain integration of the tax system (see topic 148).

I am pretty sure there is also a foreign dividend tax credit as well.

Canadian exchange traded funds are also eligible for the Canadian dividend tax credit, although this only applies to Canadian ETFs that pay dividends (and hold Canadian stocks).

One more thing, only Canadian public companies are eligible for the enhanced dividend tax credit (as you'll see in part 2).

In particular, changes effective this month to the way dividend tax credits are accounted for may now be playing out on the futures and swaps market.

Gordon Brown's decision to scrap dividend tax credit in his first Budget has been defended by a Treasury official amid criticism from charities and the Conservatives.

I agree that, between Canadian and Non-Canadian equities, Canadian stocks should be outside RRSP (to get dividend tax credit).

That means if you earned $ 100, you'd report $ 118 as dividend income and be charged 72 % on those earnings (the new Dividend Tax Credit rate for non-eligible dividends), rather than the 67 %.

There are also provincial dividend tax credits: in Ontario since 2014 it has been 10 per cent of the grossed - up dividend.

Also, a Canadian investor would lose the Canadian dividends tax credit by investing his Canadian % in equities by using this outside - Canada ETF if I understand the issue correctly.

Canadian dividends also receive a generous dividend tax credit that benefits low - income investors in particular: a retiree in Ontario whose only other source of income is the Canada Pension Plan and Old Age Security might be able to collect more than $ 20,000 a year in eligible Canadian dividends and pay no tax.

For 2016, these dividends are subject to a 17 % dividend gross - up and a federal dividend tax credit equal to 10.52 % of the grossed - up taxable dividend.

That means if you earned $ 100, you'd report $ 118 as dividend income and be charged 72 % on those earnings (the new Dividend Tax Credit rate for non-eligible dividends), rather than the 67 %.

So apart from the Canadian dividend tax credit giving you a major tax - deferral opportunity, dividends can supply a big part of your overall long - term portfolio gains.

The provinces all have their own dividend tax credit rates (refer to the individual tax tables for a comparison of the top marginal eligible and ineligible dividend rates by province).

Maybe Horizons BetaPro should do this for a S&P 500 tracker to turn that foreign dividend income (not eligible for Cdn dividend tax credit and taxed as ordinary income) into cap gains and offer a low MER to boot.

For 2016, dividends designated as eligible dividends are subject to a dividend gross - up of 38 % and a federal dividend tax credit equal to 20.73 % of the actual dividend.

I'd heard they were failling to render correct T5 tax slips with the eligible canadian dividend tax credits, but i hadn't known they were also collecting a pseudo-US 15 % NR withholding tax as well.

As a Canadian, if I buy US stocks and receive dividends in a non tax sheltered account, then those dividends are not suited for dividend tax credit.

To avoid taxing those dollars twice, the government allows you to «gross up» the dividend amount, then claim a generous dividend tax credit.

I am interested in buying stock in a Canadian public company, does it matter if I buy it on the TSE or the NYSE to be eligible for the «enhanced dividend tax credit» you spoke of?

It is speculated that the dividend tax credit may be revised and lowered as these tax credits are seen to mainly benefit the wealthy.

In the weeks leading to the release of Canada's 2017 federal budget, there was plenty of speculation that Finance Minister Bill Morneau might raise the capital gains inclusion rate, make changes to dividend tax credits, and more.

However, the vast majority of Canadians will not be impacted by these changes as most investors hold shares in public corporations, which are eligible for the current Dividend Tax Credit (which includes a 25 % gross up and a corresponding Dividend Tax Credit of 2/3, or 67 %).

On top of that add the advantage of CPD's dividend tax credit.

In other words, equity dividends are higher by a third of a percentage points than quality bond yields, and that's before the dividend tax credit and before any capital gains.

That's probably generally true, but might not be true in every case, since withdrawals from RRSPs are fully taxed whereas investment income in the form of capital gains are only half taxed and dividend income is subject to the dividend tax credit (which means it can be effectively tax free below some threshold ~ 40K or something like that, and the top marginal rate caps out in the mid - to high - 30 %, depending on your province).

You are right that the elimination of the dividend tax credit would increase the amount of tax you pay on dividends, but in general all shareholders (preferred shareholders aside, there would need to be a temporary exemption for them) would be made much better off if all corporate taxes were eliminated (even if the tax credit went away too) because they would receive more dividends and capital gains.

They're the middle class that he's talking about and you would hit them pretty hard if you took the dividend tax credit away or you reduced it,» he said.

As with other cases of special treatment of investment income, including capital gains, the benefits of the dividend tax credit flow overwhelmingly to persons with very high incomes.

The dividends would have an advantageous tax rate through the dividend tax credit and they might earn capital gains as well.

Changing the dividend tax credit would be controversial in light of how much seniors have come to rely on dividend income at a time of ultra-low interest rates.

One of the reasons why we have the dividend tax credit is related to tax fairness.

Mr. Macdonald singled out five federal tax measures as being the most inequitable to lower income people based on 2011 data — the dividend tax credit, partial inclusion of capital gains, the foreign tax credit, employee stock options and pension income splitting.

Mr. Macdonald's report pegs the loss of revenue to the government here at $ 4.7 - billion in 2011, which compares to $ 4.1 - billion for the dividend tax credit and $ 3.8 - billion for the partial inclusion of capital gains.

The dividend tax credit, and the calculations that go into it, are designed to prevent double taxation.

The dividend tax credit then applies to this grossed - up amount

Dividend tax credit: a credit you can claim on your tax return that reduces the amount of tax you pay on dividends from Canadian companies

This low - tax phenomenon happens through a combination of the Basic Personal Amounts (which in 2016 made the first $ 11,474 tax - free federally) and the 15.02 per cent federal dividend tax credit on eligible Canadian dividends: once you «gross up» your eligible dividend income by 38 per cent (required when you file your annual taxes), the non-refundable dividend tax credit kicks in, reducing taxes owing.

This goes back to what I said earlier: the dividend tax credit can completely eliminate the need to pay income tax on dividends at low income levels.

This preferential tax treatment is known as the «dividend tax credit» and amazingly can completely eliminate the need to pay income tax on dividends at low income levels.