1) Marginal tax rate for dividends is a % of actual dividends received (not grossed-up amount).
2) Marginal tax rate for capital gains is shown as a % of total capital gains (not taxable capital gains).
3) Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is 17%.
4) Negative amounts can only be used to offset other income taxes payable (it is assumed the taxpayer has other income).
5) Salary and RRSP/RRIF withdrawals and other income are taxed at the same rates.
6) One can invest currently up to $6,000.00 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Any income earned, capital gains or contributions can be withdrawn tax free.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 to 2019 is $63,500.00)
7) 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.
8) Canadian dividends and capital gains have a significant tax advantage. For tax payers with lower income dividends are particularly attractive
9) Capital gains are only taxed when realized. Accrued capital gains are tax deferred until disposal.
Negative amounts can only be used to offset other income taxes payable (It is assumed the taxpayer has other income)
The Combined Corporate Tax Rates (Federal & British Columbia)
General 27.0% 27.0%
Small Business 11.0% 12.0%
Investments 50.7% 50.7%
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