April 12, 2016
CRA Capital Dividend Account
Do you like taking money out of your company tax-free?
Most business owners learn pretty quickly that if they take money out of their business for personal use, they’ll end up paying personal tax on the withdrawal as either:
Or taxable dividend
However, not all dividends from a company will necessarily cause the individual to pay personal tax. One common example of this is when a dividend is paid out of a company’s “Capital Dividend Account”.
To find out if your company has a capital dividend account, or how to set up a CRA Capital Dividend Account to pay yourself a tax-free capital dividend, contact your Manning Elliott tax advisor today.
The above content is believed to be accurate as of the date of posting. Tax laws are complex and are subject to frequent changes. Professional advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained therein.