Dividend Tax Credit
The Ontario government will introduce legislation that would, if approved, create a new, enhanced dividend tax credit for Ontarians investing in Canadian corporations.
Ontario proposes to parallel the new federal gross-up and introduce a second, higher tax credit for eligible dividends, to be phased in over five years - starting at 5.13 per cent and growing to 7.7 per cent by 2010. The changes would apply to eligible dividends received on or after January 1, 2006.
