Dividend Tax Credit Class
The objective of this class is to provide a fixed monthly dividend at a rate of 6% ($0.60 per share per annum), consisting primarily of taxable Canadian dividends.
Select any one of our Bond, Balanced or Equity Funds and receive a monthly distribution of eligible Canadian dividends, one of the lowest tax rate incomes available in Canada.
NEW! Additional Dividend Distribution Rates for the.jpg)
NexGen Canadian Bond Fund
The NexGen Canadian Bond Fund offers a second distribution rate within its Dividend Tax Credit Class option. The additional reduced rate of $0.40/share/year provides our clients with more control over their monthly income.
| Existing | New | ||
 |
 |
||
 |
|||
| ROC | ROC 40 | ||
| Yearly | $0.75 | $0.40 | |
| Monthly | $0.0625 | $0.0333 | |
Top Uses:
- Make any Fund a “Dividend” Fund
- Receive monthly dividend distributions on any NexGen Bond, Balanced or Equity Fund regardless of the underlying portfolio assets
- Tax Free Dividends
- Receive a maximum of up to $66,650 of Canadian eligible dividends tax free depending on your province of residency and other income
- Tax Efficient Income Sprinkling
- Corporate clients can stream dividend income to multiple family members on a tax efficient basis
Substantial amounts of annual Canadian dividend income may be received on a tax-free basis by individual investors with no other sources of income. The tax-free threshold does vary depending upon your province of residence. As a result, you should discuss the chart below with your financial advisor.
Eligible Canadian dividends provide a significant tax advantage compared to ordinary investment income. In 2010 approximately $66,650 of eligible dividends can be earned by an individual with no other source of income before any basic federal income taxes are payable. Provincial taxes can apply at lower thresholds as shown below. However, actual dividends received above approximately $49,000 can give rise to federal and provincial Alternative Minimum Tax. Consult your financial advisor.
| 2010 Tax-Free Limits for Eligible Dividends* | ||||
| British Columbia | Alberta | Ontario | Quebec | |
| Eligible Canadian Dividends | $66,650** | $66,650*** | $49,820**** | $30,875**** |
| * All maximums subject to changes in Canadian Legislation. Consult your financial advisor. | ||||
| ** While basic federal tax starts at $66,650 provincial tax on eligible dividends does not commence until a level of $135,000 in BC. Alternative Minimum Tax can apply (At the $66,650 level it would be approximately $3262). ***Alternative Minimum Tax can apply (at the $66,650 level it would be approximately $3294). |
||||
| **** At these levels, Health Tax would be payable: Ontario: $600; Quebec: $150 Alternative Minimum Tax can be Applied in each case.
|
||||
| Top Marginal Tax Rates - 2010 | ||||
| British Columbia | Alberta | Ontario | Quebec | |
| Eligible Canadian Dividends | 21.45% | 15.88% | 26.57% | 30.68% |
| Ordinary Investment Income | 43.70% | 39.00% | 46.41% | 48.22% |
Dividend Tax Credit Class Marketing Materials
NexGen Innovation Explained
NexGen Dividend Tax Credit Class: Harness the Power of Dividends
Who should select the Dividend Tax Credit Class:
- Make any NexGen Tax Managed Fund an "eligible Canadian Dividend-paying" Fund.
- Investors who wish to maximize the dividend tax credit and create tax-effective income.
- Non-working family members who have taxable portfolios.
- Non-working family members, over the age of 18, who are the participants of bona fide income-splitting strategies.
- Working family members with taxable incomes below the provincial thresholds
The initial distribution rate is based upon a net asset value per share of $10 and may be adjusted annually based upon the net asset value per share at the date of adjustment.
