Quebec -> Dividend tax credit
Quebec Dividend Tax Credit
QC Taxation Act s. 767, s. 497
The rates for dividends eligible for the enhanced dividend tax credit are:
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. Although Quebec is not required to use the reduced gross-up rates, they normally follow the federal legislation for this.
The legislation for the Quebec non-eligible dividend tax credit sets the rate at 7.05% of the taxable dividend.
The rates for non-eligible, or small business dividends are as per the following table, unless Quebec tables legislation to change the rate:
The small business corporate tax rate was reduced to 8% effective March 24, 2006. Prior to that, it was reduced to 8.5% effective January 1, 2006. See Corporate Income Tax Rates.
For current tax brackets and complete rates see QC marginal tax rates table.
Revised: October 24, 2017
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