2015/2016 Tax Tables

(1)  Negative amounts can only be used to offset other income taxes payable (It is assumed the taxpayer has other income)

(2) Salary and RRSP/RRIF withdrawals and other income are taxed at the same rates
      The combined Corporate Tax Rates (BC Provincial & Federal)

 


General
Small Business
Investment (See Note)

2016
26%
13.00%
49.7%

2015
26%
13.50%
45.67%

NOTE: The refundable portion of the corporate rate for investment income has increased from 26.67% in 2015 to 30.67% in 2016. The actual dividend refund has increased from 33% in 2015 to 38.33% in 2016.

(3)  Canadian dividends and capital gains have a significant tax advantage. For tax payers with lower income dividends are particularly attractive.

(4) Capital gains are only taxed when realized. Accrued capital gains are tax deferred until disposal.

(5) One can invest currently up to $5,500.00 per year or the cumulative amount you haven’t contributed to date in a tax free savings account (TFSA). Any income earned, capital gains or contributions can be withdrawn tax free. (Cumulative limit from 2009 to 2016 is $46,500.00)

(6) Ineligible dividends are defined as dividends paid by a Canadian company from income which is subject to the small business deduction.

Eligible dividends are dividends paid by a corporation taxed at high rates, generally paid by a public company or a dividend paid to an investment company originating from a public company and then paid through to an individual taxpayer.

 

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