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Hi

If i take dividends from my small business

1)I understand it will be taxed once according to sm business taxation.
Is there any chart for tax rates on Ontario?
2)After taking dividend will it be further counted into my income and again will I be income taxed?

Please guide!
Thanks
Ashish
 

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Personal tax rates: http://www.walterharder.ca/

Corporate tax rates: http://www.kpmg.ca/en/services/tax/taxrates.html

How it works:
1. Corporation makes money, which is taxed at corporate tax rates - lower if it's a small business.
2. Corporation issues shareholders either a regular salary (taxed as income) or periodic dividends (taxed as dividends).

If you add corporate and personal taxes, Revenue Canada will get approximately the same pound of flesh. However....if the corporation has invested the money in the meantime, and its value grows, it pays to defer issuing the dividend or salary. Tax efficient example: a couple has one spouse earning a salary while the other spouse runs a corporation. They live on the salary. After retirement, they take corporate dividends. They are now in a lower tax bracket and pay very little tax on the dividends.
 
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