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Glossary term
Eligible vs Non-Eligible Dividends
Two categories of Canadian dividends with different gross-up and dividend tax credit. Eligible (from public-company or general-rate CCPC income) — lower personal tax. Non-eligible (from SBD income taxed at 9%) — higher personal tax, because integration evens out the total. Drives an owner's salary-vs-dividend decision.
Related terms
Tax Integration
A core principle of Canada's tax system: income earned through a corporation and paid to the owner as a divid…
GIC
Guaranteed Investment Certificate — a deposit product with guaranteed return of principal + fixed interest ov…
Foreign Withholding Tax
Tax another country withholds from dividends before paying you. The US withholds 15% on dividends from US sto…
CMHC Mortgage Default Insurance
Mortgage default insurance required when your down payment is under 20% of the home price (a high-ratio mortg…
Amortization vs Term
Amortization is the full payoff period of a mortgage (typically 25-30 years). The term is how long your curre…
TFSA
Canadian registered account where investments grow tax-free and withdrawals are tax-free. 2026 limit: $7,000/…
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