|
Newfoundland & Labrador dividend tax credit
Eligible dividends
NL Income Tax Act, 2000 s. 20(b)
In 2009, the dividend tax credit for dividends eligible for the enhanced dividend tax credit
is 31.42% (previously 21.43%) of the Federal gross-up amount, which at 45% gross-up
is
 |
9.75% of grossed-up dividends |
|
14.14% of actual dividends |
In 2010 the gross-up amount is 44%, which results in an
enhanced dividend tax credit (for January to June 2010) of
|
9.60% of grossed-up dividends |
|
13.82% of actual dividends |
The NL
2010 Budget revised the dividend tax credit for eligible dividends to 11% of
the taxable dividend, effective for dividends received on or after July 1, 2010.
| Year |
2009 |
2010 |
2011 |
2012 |
Before
Jul 1 |
Jul 1
and later |
| Gross-up % |
45% |
44% |
44% |
41% |
38% |
| enhanced dividend tax credit as a % of |
| grossed-up dividends |
9.75% |
9.60% |
11.00% |
11.00% |
11.00% |
| actual dividends |
14.14% |
13.82% |
15.84% |
15.51% |
15.18% |
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
|
5% of grossed-up dividends |
|
6.25% of actual dividends |
The legislation is changed effective 2010, to make this
dividend tax credit equal to 5% of grossed-up dividends. The rate
does not change.
Revised: June 22, 2010
|
