Corporate Taxation and U.S. Federal Tax Rates
Investment Income¹ – 2018
|2018||%||% combined||% RDTOH2|
|Prince Edward Island||16.00||54.67||30.67|
|Newfoundland and Labrador||15.00||53.67||30.67|
1 Investment income includes interest, taxable capital gains and other property income, but not deductible dividends. 2 Investment income of CCPCs gives rise to refundable dividend tax on hand (RDTOH) of 30.67%. This income tax is refundable at the rate of 38.33% when taxable dividends are paid. For taxation years beginning after 2018, the RDTOH will be allocated between two separate accounts (eligible and non-eligible) refundable based on the nature of the dividend paid by the corporation. 3 15% rate for non-CCPCs. 4 Since January 1, 2018 (11% before that date). 5 Since January 1, 2018 (11.8% before that date). Rate reduced by 0.1% per year, to reach 11.5% on January 1, 2020. 6 Since January 1, 2018 (11.5% before that date).
This document is up to date as of August 31, 2018 and reflects the status of legislation, including proposed amendments at this date.