Tax Advantages on Stock Dividends in Canada



Lowest commission Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max
Related Topics

Tax advantages

Vision

Canadastock.ca is commited to providing quality stock data and analysis to Canadian investors and those living abroad.

 

The taxes charged on dividends in Canada is a complex game that we do not pretend here at Canada stock to fully understand.

When it comes to tax advice, you should ALWAYS consult an accountant. That said, we are going to relay to you what we THINK we know about the dividend tax situation in Canada.

If played correctly, the tax advantages to buying Canadian dividend bearing canadian securities can be very large.

When you are buying a stock that yields, you need to consider if it is "eligible" or "non-eligible" for the Canadian enchanced tax dividend credit. Depending on your income bracket, you can save a lot of money in your taxes paid if the dividends you receive are "eligible". Generally, most Canadian Controlled Public Corporations are eligible.

Spend $50 to have a consultation with a good accountant you trust. He or she will help you to figure out what the best investment classes are for your tax situation. You will not regret this.

Disclaimer

Please read our full disclaimer below and keep in mind that nothing on this page shall be interpreted to be actual advice.