What's new for return of investment income (T5)

Internet file transfer availability

Internet filing is available from January 9, 2017.

Other than eligible dividends

Starting January 1, 2016, an adjustment to the gross‑up factor and corresponding dividend tax credit, applicable to non‑eligible dividends, further reduces taxes paid by small businesses.

The gross‑up factor applicable to non‑eligible dividends changes from 18% to 17%. In addition, the corresponding DTC changes from 13/18 to 21/29 of the gross‑up amount effective January 1, 2016. Expressed as a percentage of the grossed‑up amount of a non‑eligible dividend, the effective rate of the dividend tax in respect of such a dividend will be 10.5217% in 2016.

Newfoundland and Labrador split dividend tax credit rate

Since information slips will not accommodate the breakdown of other than eligible dividend income, financial institutions should issue either a statement or letter to those who reside in Newfoundland (NL) on December 31, 2016, indicating the taxable amount of other than eligible dividends declared and paid before July 1, 2016, in addition to providing the T5 slip as usual.

Date modified:

2017-01-18