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Tax Credits – Dividend Tax Credit
Dividends received from taxable Canadian corporations qualify for the dividend tax credit.
When including these dividends in income, the "taxable dividend" is reported as 125% of the actual dividend (dividend plus 25% gross up).
The B.C. dividend tax credit is calculated as:
2010 |
17.0% of gross up (3.4% of taxable dividend) |
2009 |
21.0% of gross up (4.2% of taxable dividend) |
2002 - 2008 |
25.5% of gross up (5.1% of taxable dividend) |
2001 |
29.5% of gross up (5.9% of taxable dividend) |
2000 |
33.0% of gross up (6.6% of taxable dividend) |
Starting in 2006, the calculation of the B.C. dividend tax credit changed. Eligible dividends received from Canadian corporations may qualify for the Enhanced Dividend Tax Credit.
Please use the Provincial Worksheet included in your income tax return package to determine your credit (opens in new window).
Legislation
Please see Section 4.69 of the British Columbia Income Tax Act and Section 18 of the
Budget Measures Implementation Act, 2009.
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