Federal Dividend Tax Credit
The federal dividend tax credit represents 15.0198% of the taxable amount of eligible dividends and 9.0301% of the taxable amount of dividends (other than eligible dividends). The program calculates the total dividend tax credit based on the amount of dividends in line 12000 of the jacket.
Federal Foreign Tax Credit
Net foreign income that is not earned from a business is deducted from the portion of income that, under a tax treaty, is not taxable in the foreign country or is deductible as non-taxable income in Canada (included on line 25600).
Net income is the income on line 23600 plus the amount minus the following amounts:
- Canadian forces personnel and police deduction (line 24400);
- Stock option and shares (line 24900);
- Other payments (line 25000);
- Net capital losses of other years (line 25300);
- Capital gains (line 25400); and
- Foreign income deductible as non-taxable income from a prescribed international organization (included on line 25600).
The basic federal tax used for the federal foreign tax credit calculation is the tax calculated on line 42900, plus the federal dividend tax credit (line 40425), minus the refundable Québec abatement (line 44000) and federal refundable first nations abatement (line 44100 on the return for resident of Yukon).
See Also
Federal Income Tax and Benefit Guide - Lines 12000, 33199 and Minimum tax