How new dividend tax rules affect biz owners

How new dividend tax rules affect biz owners (www.advisor.ca)  In Canada, we try to tax business income the same whether it’s earned as salary or as dividend income.

Active business income earned within a corporation should be taxed so the combined corporate tax paid on income, plus the personal tax paid on dividends, is taxed the same as personal salary income. Mechanisms such as the dividend tax credit help with that goal. But actual tax rates don’t always line up with that goal.

In fact, in most provinces, it’s more advantageous in 2013 to earn active business income through a corporation than to earn it personally…

Tagged with: ,
Posted in Cross-Border Blog
Cross-Border Series
The Border Guide
Now available in its 11th edition, The Border Guide has sold over 80,000 copies and is considered the definitive cross-border financial tool for Canadians living, working and investing in the United States.
A Canadian's Best Tax Haven
This book will show you how to realize your dream of living a lifestyle in a climate that allows for year-round golfing and sandy beaches while lowering your taxes and cost of living.
Taxation of Canadians in America
This book addresses individual US taxation and estate planning issues you will face as a Canadian living in the US.
Taxation of Americans in Canada
US citizens and green card holders are subject to US tax regardless of where they reside in the world. Are YOU at risk?

Crossing the Border?
TRY OUR CROSS-BORDER FORUM »
Get Updates from Us
SIGN UP FOR E-UPDATES »