TaxTips.ca
Canadian Tax and
Financial Information
Quebec Dividend Tax Credit

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Quebec -> Dividend tax credit

Quebec Dividend Tax Credit

QC Taxation Act s. 767, s. 497

Quebec  Enhanced Dividend Tax Credit

The rates for dividends eligible for the enhanced dividend tax credit are:

     Quebec Dividend Tax Credit Rate for Eligible Dividends

Timing Gross-up
%
% of Grossed-up
Dividend
% of Actual
Dividend
2012 and later 38% 11.9% 16.422%
2011 41% 11.9% 16.779%
2010 44% 11.9% 17.136%
after Mar 23, 2006 to
Dec 31, 2009
45% 11.9% 17.255%
before Mar 24, 2006 45% 10.83% 13.5375%

Quebec  Non-Eligible Dividend Tax Credit

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:

     Quebec Dividend Tax Credit Rate for Non-Eligible Dividends

Timing Gross-up
Rate
% of Grossed-up
Dividend
% of Actual
Dividend
2019+ 15% 7.05% 8.11%
2018 16% 7.05% 8.18%
2016/2017 17% 7.05% 8.25%
2014/2015 18% 7.05% 8.32%
after Mar 23, 2006
to Dec 31, 2013
25% 8% 10%
before Mar 24, 2006 25% 10.83% 13.5375%

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

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.