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I want to know how to report my UK dividend on my Canadian tax return.
(1) Do I enter $30,000 or $33,333 as dividend income.
(2) How much foreign tax paid do I use to calculate my Federal and Provincial tax credit. $7,261.35 or $3,928.05.
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If you have received $33,333 as dividends, then the tax credit on this amount would be
$3,703.66 (being notional tax at 10%). The amount of dividend that you actually receive represents 90% of gross dividend after 10% notional tax. Calculation of gross dividend is (33,333x10/9).
If you were reporting this dividend when filing a UK tax return then your Dividend gross would be (33,333.00+3,703.66) $37,036.66 to calculate your overall tax payable and you will get a tax credit of $3,703.66 against your tax bill.
Based on above, you should use $3,703.66 as foreign tax paid.
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I don't think you know Canada Tax. You got everything wrong.
I received UK dividend $30,000 cash + 10% tax credit ($3,333.33). I also paid UK tax on dividend $3,703.66 cash.
I want to know how to file my Canada tax: Do I report $30,000 or $33,333 as foreign dividend income? What foreign tax paid do I report? $3,703.66 or $3,333 + $3,703.66?
Dividends received from UK companies carry a notional tax of 10%.
You have received $30,000 in dividends with a dividend tax credit of $3,333 making your dividend income $33,333 carrying a tax credit of $3,333.
Line 121 of your tax return requires you to report any foreign dividends you have actually received. You should report $30,000 as amount received.
Foreign dividends do not qualify for the dividend tax credit.
If you paid foreign taxes on your interest or dividend income, you may be able to claim a foreign tax credit when you calculate your federal (see line 405) and provincial or territorial taxes (Form 428). So you should report $3,703.66 as foreign tax paid.