Dividend Tax Credit Class

The Dividend Tax Credit Class:
A Tax Managed Income Solution

With an aging population that will increasingly rely upon income from investment portfolios, the tax-efficiency of income will become essential for maintaining the portfolio longevity necessary to achieve retirement goals. Imagine choosing any number of NexGen Tax Managed Funds while still receiving consistent and predictable dividend payments. At NexGen, we offer your clients the option to make any NexGen Fund an “eligible Canadian dividend-paying Fund”.

The objective of Dividend Tax Credit Class, which can be selected with any NexGen Tax Managed Fund, excluding NexGen Canadian Cash, is to provide a fixed monthly dividend at a rate of 6% ($0.60 per share per annum), consisting primarily of tax efficient eligible Canadian dividends. As your income tax and investment outlook changes NexGen’s unique Fund structure permits tax deferred switching between NexGen Funds and their Tax Classes – Dividend Tax Credit Class, Return of Capital Class, Capital Gains Class and Compound Growth Class.

Tax Benefits of Eligible Canadian Dividends

Recent federal and provincial budgets have increased the benefits of receiving eligible Canadian dividend income by increasing the tax credits available. In most provinces, eligible Canadian dividends will be taxed at the lowest rates when compared to other forms of investment income.

Follow these links for more information on NexGen Tax Classes & NexGen Funds

Additional Uses and Cases for the Dividend Tax Credit Class:

• Maximize the dividend tax credit to create tax-effective income
• Family Income Splitting Strategies
• Incorporated Business Income Splitting Strategies
• Family Members with modest or no income