Canada: Refundable Dividend Tax on Hand
As of January 1, 2019, Canadian controlled private corporations (CCPCs) are subject to a new set of complex tax rules relating to the refundable dividend tax on hand (RDTOH) balance. These rules limit the CCPC's ability to recover RDTOH balance through the payment of eligible dividends. The new legislation could increase the tax cost to individual shareholders upon receipt of dividends. Additional tax cost varies between 6 and 14 percent, depending on the province.