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NL Dividend Tax Credit

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Atlantic Provinces   ->   Newfoundland & Labrador -> NL Dividend Tax Credit

Newfoundland & Labrador Dividend Tax Credits

NL Enhanced Dividend Tax Credit for Eligible Dividends

NL Income Tax Act, 2000 s. 20(b)

The NL 2014 Budget revised the dividend tax credit for dividends eligible for the enhanced dividend tax credit from 11% to 5.4% of the taxable dividend, effective for dividends received on or after July 1, 2014.  This rate is still in effect.

NL Enhanced Dividend
Tax Credit

2013 2014 & Later
Before
Jul 1
Jul 1
and later
Gross-up % 38% 38% 38%
enhanced dividend tax credit as a % of
grossed-up dividends 11.00% 11.00% 5.40%
actual dividends 15.18% 15.18% 7.45%

From July 1, 2010 until December 31, 2013, the dividend tax credit for eligible dividends was 11% of the grossed-up taxable dividend, which at 38% gross-up was 15.18% of the actual dividend amount.

See the marginal tax rates for NL for current marginal tax rates for eligible and non-eligible dividends and other income.

NL Dividend Tax Credit for Non-Eligible Dividends

NL Income Tax Act, 2000 s. 20(a)

The NL 2016 budget revised the non-eligible dividend tax credit from 4.1% to 3.5% of the taxable dividend, for dividends received on or after July 1, 2016.

The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be reduced to 16% for 2018, and to 15% for 2019 and later years.

The current and past Newfoundland and Labrador rates for non-eligible dividends are shown in the following table.  The 2018 and later rates will be in effect unless legislative changes are made by NL.

     NL Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2019 15% 26.83% 3.5% 4.03%
2018 16% 25.38% 3.5% 4.06%
2016 Jul - 2017 Dec 17% 24.09% 3.5% 4.10%
2016 Jan-Jun 17% 28.22% 4.1% 4.80%
2014 Jul-Dec & 2015 18% 26.88% 4.1% 4.84%
2014 Jan-Jun 18% 32.78% 5% 5.90%
2013 25% 25% 5% 6.25%

Revised: October 24, 2017

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