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Quebec Dividend Tax Credit

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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 2016 Budget announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be not be revised further after 2016, and the Federal tax credit rate for these dividends would remain at 2016 rates.

The Quebec Finance Ministry announced in Bulletin 2015-4 (pdf) that the rate of the tax credit applicable to non-eligible dividends would remain unchanged (i.e., at 7.05% of the taxable dividend) in regard to the change in the gross-up.

The rates for non-eligible, or small business dividends are as per the following table:

     Quebec Dividend Tax Credit Rate for Non-Eligible Dividends

Timing Gross-up
Rate
% of Grossed-up
Dividend
% of Actual
Dividend
2016 and later 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: March 15, 2017

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