| Description |
Investment
CCPC |
Upto $400,000
Active Income
CCPC (SBC) |
$400,000 to
$500,000
Active Income
CCPC |
Other Income |
Above
$500,000
Manufacturing
Income |
| Federal |
38.00% |
38.00% |
38.00% |
38.00% |
38.00% |
| Surtax |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
| Refundable tax on investment income |
6.67% |
|
|
|
|
|
44.67% |
38.00% |
38.00% |
38.00% |
38.00% |
| |
|
|
|
|
|
| Federal Abatement ITA 124(1) |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
-10.00% |
| General Reduction ITA 123.4(2) |
|
|
|
-9.00% |
|
| Manufacturing reduction ITA 125.1(1) |
|
|
|
|
-9.00% |
| Small Business Deduction ITA 125(1) & (2) |
|
-17.00% |
-17.00% |
|
|
|
-10.00% |
-27.00% |
-27.00% |
-19.00% |
-19.00% |
| |
|
|
|
|
|
| Federal Tax |
34.67% |
11.00% |
11.00% |
19.00% |
19.00% |
| Provincial Tax |
12.50% |
1.00% |
12.50% |
12.50% |
12.50% |
|
47.17% |
12.00% |
23.50% |
31.50% |
31.50% |
| |
|
|
|
|
|
| Income of corporation after tax |
52.83% |
88.00% |
76.50% |
68.50% |
68.50% |
| RDTOH |
26.42% |
|
|
|
|
| Dividends declared and received |
79.25% |
88.00% |
76.50% |
68.50% |
68.50% |
| Tax on dividend |
30.28% |
33.63% |
29.23% |
16.32% |
16.32% |
| Income of individual after tax |
48.96% |
54.37% |
47.27% |
52.18% |
52.18% |
| Combined tax paid at the top personal rate |
51.04% |
45.63% |
52.73% |
47.82% |
47.82% |
NOTE:
1) Tax rates are effective January 1, 2009.
2) CCPC: Canadian Controlled Private Corporation
3) Investment income excludes dividends from Canadian corporations.
4) Active income threshold is calculated on an associated basis.
5) Non-resident shareholders are subject to withholding tax of 25% or less on dividends depending on tax treaty with Canada.
6) Top marginal tax rate on dividends - Investments & active income below $500,000
(non-eligible dividends) is 38.21%.
7) Top marginal tax rate on dividends - Non-resident owned corporations and active income over
$500,000 (eligible dividends) is 23.82%.
NOTICE TO READER:
In preparing the above tables great care has been taken to ensure accuracy,
However, readers are strongly advised to consult a professional before relying
on the contents of the above table.
|
