Skip Cayman Island. Hop On A Plane to BC instead.
Psst! Did you know a British Columbian couple can earn as much as $99,200 in dividends and not pony up a dime for income tax? Legally?
BC is truly Canada’s most exhilarating province where the government begs you to splurge on mountain hiking, skiing, fishing, sailing, golfing and urban living, at least in Vancouver. Best of all, you can do all that tax-free with passively generated dividend income from qualified Canadian corporations.
What’s the secret to this tax-free nonsense?
Everyone, please hail to the power of dividend tax credit. Simply put, dividend tax credit (DTC) reduces the amount of tax you pay to the government. You can calculate this tax credit by following my post on How To Calculate Dividend Tax Credits. In a nutshell, all dividend incomes are “grossed-up” to 145% of the actual dividends received. In the eyes of the […]
Original post by Financial Jungle Guy