How to Prepare a T5 Slip for Dividends Paid | Watch Video
Allan Madan, CPA, CA
Watch this video tutorial on how to prepare a T5 slip for dividends paid to shareholders of Canadian corporations.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Hi Allan,
Your video on the T5 tax slip was really helpful! Thank you for posting it!
I have a question regarding non-eligible dividends:
It is my understanding is that the 15% gross up for calculating the taxable amount (Box 11) and the application of (9/13) times the grossed up amount for calculating the tax credit (Box 12) are based on federal tax rates (applicable across Canada). If my small business is based in Ontario, are there Ontario specific numbers I need to also consider when filling out my T5 slip for non-eligible dividends?
For example: If I plan on paying out $100,000.00 in non-eligible dividends out of my small business and report it on a T5 slip, I would show Box 10: $100,000.00; Box 11: $115,000.00 and Box 12: $10,384.62, insofar as federal tax rates go.
However, am I missing any additional Ontario specific gross ups and Ontario specific tax credit rates?
The Ontario specific numbers are not reported on the T5 Slip. The Ontario dividend tax credit is calculated using ON Form 428, which is part of your personal tax return. The Ontario dividend tax credit is on top of the Federal dividend tax credit.