Sep 21, 2017 If you have set up your small business as a corporation, you have a choice as to
how to pay yourself. You​can pay yourself a … Salary is one hundred percent
taxable (unlike dividends, which are taxed at a lower rate) so it's possible that
paying yourself a salary could increase your tax load. As for Canada …

Dec 12, 2017 Non-Eligible (Small Business) Dividend Tax Credit (DTC)
… Note: The gross-up and dividend tax credit are applicable to individuals, not corporations.
Non-eligible dividends, also known as regular, ordinary, or small business dividends, are any dividends issued by a Canadian

With small business corporation rate approximately equal to 15%, assuming it is
located in Ontario, the company will save about 6.27k ([40,000+1,807 CPP
company part]*15%) in income taxes after paying a 40k salary, assuming it has a
net income for that year. An individual, who is Ontario resident, receiving 40k
income, …

Tax Rate for 2018. November 14, 2017. No. 2017-56. Ontario's Minister of
Finance Charles Sousa announced small business tax relief in the province's Fall
… eligible dividend tax rate for individuals. The update also … first $500,000 of
qualifying active business income of a Canadian-controlled private corporation to
3.5% …

Canada's dividend tax credit is the credit individuals can apply against taxes they
owe on dividends paid to them by Canadian companies. The dividend tax credit
doesn't apply to dividends paid by foreign corporations. The primary purpose
behind dividend tax credits is to avoid double taxation since dividends are paid to

There are now two tax rates that can apply to dividends, depending on whether
they're eligible or regular dividends (see topic 143). The eligible dividend regime
also means that it's no longer a rule of thumb to bonus down to the small
business limit. Tax tip: Consider paying yourself a salary large enough to make
maximum …

Nov 27, 2017 While the smallbusiness tax reductions generated significant media attention, a
less conspicuous but significant tax change accompanied the corporate small
business tax reductions — personal tax rate increases on ordinary (or non-
eligible) dividends. The following is a summary of the recent changes.