Canadian Currency Exchange

Canadian Currency Exchange » research of currency value

1. gill_heath
   Member

   hi guys,
   i am often asked as to what the meaning of dividend tax credit is.
   The meaning of dividend tax credit is the amount a Canadian resident applies against their tax owing on the grossed up portion of dividends received from Canadian corporations.
   The dividends an individual receives from Canadian corporations are "grossed up" by 25%. This amount is then included on their income tax form as taxable income. Both Canadian federal and provincial governments then grants individuals a tax credit, equal to a percentage of the grossed up amount. This helps to reduce the actual tax payable.
   Let's run through an example. Susan Smith has a marginal income tax rate of 25% and is located in Alberta, where the provincial dividend tax credit is 6.4%. The federal dividend tax credit is 13.33%. Her total dividends for the year were $250. On the taxable income portion of her tax return she will include $312.50 (250*1.25). Her approximate taxes owing on this dividend would then be $78.13 (312.50*25%). She also receives dividend tax credits of $41.67 (312.50*13.33%) and $20 (312.50*6.4%). Therefore, in all her taxes payable on her dividend is $16.46 (78.13-41.67-20). This amounts to only 6.58% of her original dividend.
   Dividend tax credits are implemented in an attempt to offset double taxing, since dividends are paid to shareholders with a corporation's after-tax profit and the dividends received by shareholders are also taxed.
   There are both federal and provincial tax credits.

   Posted 5 months ago #
2. gill_heath
   Member

   while studying the present foreign exchange market dynamics, one'd better pay no mind to tertiary sector industry related news like, for example the fact that the aircraft and aviation equipment import market are about to to climb up and affect the BBD-CYP rates, and concentrate on trade ing reasoning like the effect of the market's downfall on the Barbados Dollar in Cyprus.

   Posted 5 months ago #
3. brendonramirez
   Member

   doyle_harper,
   apparently the notion that the Barbados Dollar is predicted to slow down vs. the Cyprus Pound around the 7th next month emerged through the fact that BBD-CYP rate will be affected by the lessening in the hand tool market, and due to that will descend, that if correct, may possibly advocate the BBD's drop-off.

   Posted 5 months ago #

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