{"id":1983,"date":"2008-03-25T18:59:50","date_gmt":"2008-03-25T22:59:50","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1983"},"modified":"2008-03-25T18:59:50","modified_gmt":"2008-03-25T22:59:50","slug":"ontario-budget-favours-dividends","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1983","title":{"rendered":"Ontario Budget Favours Dividends"},"content":{"rendered":"

The Ontario Budget has just been introduced. According to KPMG<\/a>:<\/p>\n

On the personal tax front, Ontario maintains its original plan to increase the dividend tax credit rate for grossed-up eligible dividends, despite changes to the federal dividend gross-up factor and dividend tax credit rate on eligible dividends. As a result, Ontario\u2019s tax rate on eligible dividends will effectively be reduced.
…<\/b>
The 2008 federal budget announced changes to the tax on eligible dividends that would reduce the gross-up factor applying to eligible dividends received by Ontario individuals, beginning in 2010. Ontario proposes to maintain its plan announced in August 2006 to increase the dividend tax credit rate on grossed-up eligible dividends to 7.4% in 2009 (from 7.0% in 2008) and to 7.7% in 2010 and subsequent years.<\/p>\n

Taking into account these changes, the top marginal tax rates applying to eligible dividends for Ontario resident individuals will be as follows:<\/p>\n\n\n\n\n\n\n
\n

Top Marginal Tax Rates for Eligible Dividends<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

 <\/p>\n<\/td>\n

\n

2008<\/b><\/p>\n<\/td>\n

\n

2009<\/b><\/p>\n<\/td>\n

\n

2010<\/b><\/p>\n<\/td>\n

\n

2011<\/b><\/p>\n<\/td>\n

\n

2012<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Federal<\/p>\n<\/td>\n

\n

14.6%<\/p>\n<\/td>\n

\n

14.6%<\/p>\n<\/td>\n

\n

15.9%<\/p>\n<\/td>\n

\n

17.7%<\/p>\n<\/td>\n

\n

19.3%<\/p>\n<\/td>\n<\/tr>\n

\n

Ontario<\/p>\n<\/td>\n

\n

9.4<\/p>\n<\/td>\n

\n

8.5<\/p>\n<\/td>\n

\n

7.8<\/p>\n<\/td>\n

\n

7.6<\/p>\n<\/td>\n

\n

7.4<\/p>\n<\/td>\n<\/tr>\n

\n

Total<\/p>\n<\/td>\n

\n

24.0<\/p>\n<\/td>\n

\n

23.1<\/p>\n<\/td>\n

\n

23.7<\/p>\n<\/td>\n

\n

25.3<\/p>\n<\/td>\n

\n

26.7<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

In effect, the Ontario top marginal tax rate on eligible dividends will drop to 7.4% (from 7.8%) by 2012. Overall, the combined federal and Ontario top marginal tax rate on eligible dividends will increase to 26.7% (from 24.0%) by 2012.<\/p><\/blockquote>\n

The quoted top marginal rate is very different from the 30.19% in 2012 estimated earlier<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

The Ontario Budget has just been introduced. According to KPMG: On the personal tax front, Ontario maintains its original plan to increase the dividend tax credit rate for grossed-up eligible dividends, despite changes to the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[],"class_list":["post-1983","post","type-post","status-publish","format-standard","hentry","category-taxation"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1983"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/1983\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}