Dividend Tax Credits
Dividends received from taxable Canadian corporations qualify for a B.C. dividend tax credit.
The B.C. dividend tax credit rate depends on what year you received the dividend and the type of dividend you received. Starting in 2006, an enhanced tax credit rate is available for eligible dividends.
The following table shows the B.C. dividend tax credit rates on taxable amount of dividends by year.
|Year||Tax credit rate on taxable amount of dividends (other than eligible dividends)||Tax credit rate on taxable amount of eligible dividends|
|2014 and subsequent years||2.59%||10%|
|2012 - 2013||3.4%||10%|
|2006 - 2008||5.1%||12%|
|2002 - 2005||5.1%||-|
Claiming the Credit
- For more information on how to report dividends and claim dividend tax credits, see Line 120 of the T1 Income Tax Return guide.
The following legislation applies to the dividend tax credit:
- Income Tax Act (B.C.) Section 4.69