Dividend tax: how to avoid paying tax on dividends?

La façon la plus évidente d’éviter l’impôt sur les dividendes est de ne pas recevoir de dividendes. Toutefois, si vous êtes actionnaire d’une société qui verse des dividendes, il existe quelques moyens de réduire le montant de l’impôt sur les dividendes que vous devez payer. L’une d’elles consiste à investir dans des actions qui offrent aux actionnaires un crédit d’impôt. Cela signifie que la société paie un certain montant d’impôt au nom de l’actionnaire, ce qui réduit le montant de l’impôt que ce dernier doit payer. Une autre façon de réduire l’impôt sur les dividendes est d’investir dans des actions qui sont détenues dans un régime enregistré d’épargne-retraite (REER). Cela signifie que les dividendes ne sont pas imposés tant qu’ils ne sont pas retirés du REER. Enfin, si vous êtes un résident canadien, vous pouvez demander un crédit pour impôt étranger pour les impôts payés sur les dividendes de sociétés étrangères. Ce crédit peut être utilisé pour compenser tout impôt canadien dû sur ces dividendes.

Si vous êtes actionnaire d’une société qui verse des dividendes, il existe quelques moyens de réduire le montant de l’impôt sur les dividendes que vous payez. L’une d’elles consiste à investir dans des actions qui offrent aux actionnaires un crédit d’impôt. Cela signifie que la société paie un certain montant d’impôt au nom de l’actionnaire, ce qui réduit le montant de l’impôt que ce dernier doit payer. Une autre façon de réduire l’impôt sur les dividendes est d’investir dans des actions qui sont détenues dans un régime enregistré d’épargne-retraite (REER). Cela signifie que les dividendes ne sont pas imposés tant qu’ils ne sont pas retirés du REER. Enfin, si vous êtes un résident canadien, vous pouvez demander un crédit pour impôt étranger pour les impôts payés sur les dividendes de sociétés étrangères. Ce crédit peut être utilisé pour compenser tout impôt canadien

The dividends obtained by the partners are taxable at the time of flat rate of 30 %provided that the partner is a natural person.

On the other hand, it is possible to choose a progressive tax scale.

In some cases, especially for partners who are affiliated with the regulation of self-employed workers, dividends are also included in the calculation of social security contributions. In this article, we will explain everything about dividends and their taxation for physical partners.

Les impôts sur les dividendes des associées « personne physique »

For income that is received after January 1, 2018, taxes on dividends received meet to the flat rate levies of 30 %.

On the other hand, the taxpayer can choose to be taxed according to the so-called progressive scale of taxes on income from movable assets, as well as capital gains that fall within the scope of the single flat-rate levy in the year of taxation.

One-time lump sum deductions of 30 %

As mentioned above, the dividends received by the physical partner are taxed by right, at a levy, known as a single flat rate of 30 %. These are composed of :

• A social security deduction rate of 17%;
• an income tax rate of 12%.

These are withdrawals that are made by a paying institution. The latter will pay directly to the State.

Therefore, it is understood that the flat-rate deduction is not final, when it comes to income tax. Instead, the amount is deducted from a flat tax of 12 % which applies to capital income.

If the rates are equal, there will be no tax adjustment. In practice, this can be considered as a flat-rate deduction, as no additional tax is applied to the income.

The amount of the net dividend is therefore perceived as net tax income!

As for the managers of companies: SARL, EURL, IS, EIRL... they are concerned by the social contribution, according to their dividend. In this case, the flat-rate levy is applied as follows:

• On the non concerned by the social contributions : in this case, normal sampling of 30 % is applied
• on the portion covered by social security contributions, a deduction of 12 % is applied

Taxes on dividends via progressive tax scales IR

On an irrevocable and express option, the physical partner can choose the taxation of the dividends via the progressive scale of the IR (Income tax). It is an irrevocable alternative which will be exercised on the declaration of the incomes subscribed by the associate during all the previous year. A deduction of 30 % will be made by the paying agency (17 % on the deduction securities and 12 % on the tax account).

People who have a fiscal income from the previous year, less than 50 000 euros (of course for one person), or 75 000 € for two people (couple) who are subject to joint taxation, can choose to spread the payments. In this case, all you need to do is to make a statement to your paying agency that you will pay your dividends before November 30 of the current year.

By choosing the taxation on dividends, according to the IR, the associate will benefit from an allowance which can reach 40 % and will therefore be able to eliminate part of its CSG.

The advance payment of these taxes is made on the dividends of the total amount.

Tips and conclusion

To conclude, it can be said that the dividends received by the various physical partners are subject to social security deductions and then to income tax. Likewise, for the partners who are affiliated to the income tax, a part of their dividends is automatically subject to the social contributions.

In general, the deductions on dividends are very important. It is therefore essential to be aware of them. study and analyze them with a chartered accountant, even before the distribution of dividends.

If you are a partner with the status of a self-employed person, you have the choice between two interesting options: either you proceed directly to a capital increase or you benefit from an additional remuneration.