RSM324H1 Chapter 10: CHAPTER 10-7
22 Feb 2017
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Chapter 10 individuals: determination of taxable income and taxes payable. Dividend tax credit: the most important tax credit from a decision-making perspective, there are 2 dividend tax credit calculations. Taxable dividends from canadian private corporations that are not. The taxable amount of a non-eligible dividend is 117% of the actual dividend received. Taxable dividends from canadian-controlled private corporations (ccpc) whose income source is active business income taxed at the lower corporate tax rate (small business deduction) However, these calculations are part of a scheme to diminish the impact of double taxation when after-tax corporate income is distributed as dividends. Other federal tax credits: the most important tax credit in this group of federal tax credits is the foreign tax credit. Individuals who earn income in a foreign country may be subject to tax on that income both in the foreign country and in canada: to avoid the full impact of double taxation, canadian taxpayers can reduce their.
