Dividend Gross-up and Tax Credit (2017)

Non-Eligible Eligible Dividends

Dividends
Gross-up 17% 38%
Federal dividend tax credit 21/29 of gross-up 6/11 of gross-up
Eligible Dividends are grossed
up by 38%. 15.0198%
Non- eligible Dividends are
grossed up by 17%. 10.5217%
Ontario dividend tax credit 4.2863% 10.00%

“Eligible dividends” subject to 38% gross up are:

• Dividends from the active business of CCPCs not eligible for SBD
• Dividends from Canadian public companies, and other corporations that are not
CCPCs, that are resident in Canada and subject to general corporate income tax rate

Non-eligible dividends subject to 17% gross up are:

• Dividends from the active business income of CCPCs that is eligible for the SBD
• Dividends from the investment income of CCPCs