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Dividend tax credit

A Canadian tax credit that reduces the tax on dividends from Canadian corporations.

Canadian InvestingIntermediate

Definition

Eligible dividends from Canadian companies held in a non-registered account are grossed up and then offset by a credit, which makes them taxed more lightly than interest income. It does not apply in a TFSA or RRSP, where other rules apply.

Watch out for

Check current rates and eligibility. This is general information.

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