The federal gross-up reductions, starting in 2010, will
automatically reduce the amount of the NL enhanced dividend tax credit as
follows:
| Year |
2009 |
2010 |
2011 |
2012 |
| Gross-up % |
45% |
44% |
41% |
38% |
| enhanced dividend tax credit as a % of |
| grossed-up dividends |
9.75% |
9.60% |
9.14% |
8.65% |
| actual dividends |
14.14% |
13.82% |
12.88% |
11.94% |
The Federal 2008 Budget reduced the gross-up
rate and the dividend tax credit rate
for dividends eligible for the enhanced dividend tax credit. See the
Enhanced Dividend Tax Credit article
for details.
Non-eligible dividends
NL Income Tax Act, 2000 s. 20(a)
Newfoundland &
Labrador dividend tax
credit rates for non-eligible, or small
business dividends (25% gross-up) is 25% of the Federal gross-up amount,
which is