Clear Data

Schedule 3
Code 1904
Dividends Received, Taxable Dividends Paid, and Protected B
Part IV Tax Calculation (2019 and later tax years) when completed

Corporation's name Business number Tax year-end

Year Month Day

• Corporations must use this schedule to report:

– non-taxable dividends under section 83
– deductible dividends under subsection 138(6)
– taxable dividends deductible from income under section 112, subsection 113(2) and paragraphs 113(1)(a), (a.1), (b) or (d)
– taxable dividends paid in the tax year that qualify for a dividend refund (see page 3)
• All legislative references are to the federal Income Tax Act.
• The calculations in this schedule apply only to private or subject corporations (as defined in subsection 186(3)).
• A payer corporation is connected with a recipient corporation at any time in a tax year, if at that time the recipient corporation meets
either of the following conditions:
– it controls the payer corporation, other than because of a right referred to in paragraph 251(5)(b)
– it owns more than 10% of the issued share capital (with full voting rights), and shares that have a fair market value of more than
10% of the fair market value of all shares of the payer corporation
• If you need more space, continue on a separate schedule.
• File this schedule with your T2 Corporation Income Tax Return.

Part 1 – Dividends received in the tax year

• Do not include dividends received from foreign non-affiliates.
• Complete columns B, C, D, H and I only if the payer corporation is connected.
Important instructions to follow if the payer corporation is connected
• If your corporation's tax year-end is different than that of the connected payer corporation, dividends could have been received from more than one
tax year of the payer corporation. If so, use a separate line to provide the information according to each tax year of the payer corporation.
• When completing columns J and K use the special calculations provided in the notes.
A B C
Name of payer corporation Enter 1 if payer Business number of
(from which the corporation received the dividend) corporation is connected corporation
connected
200 205 210

D E F G
Tax year-end of the payer corporation in which Non-taxable Taxable dividends deductible from taxable income Eligible dividends included
the sections 112/113 and subsection 138(6) dividends under under section 112, subsections 113(2) and 138(6), in column F
dividends in column F were paid YYYYMMDD section 83 and paragraphs 113(1)(a), (a.1), (b), or (d) 1
220 230 240 242

Total of column E
(enter amount on line 402 of Schedule 1)

Taxable dividends received from connected corporations (total amounts from column F with code 1 in column B) . . . . . . . . . . . . . . . 1A

Taxable dividends received from non-connected corporations (total amounts from column F with no code in column B) . . . . . . . . . . 1B

Subtotal (amount 1A plus amount 1B, include this amount on line 320 of the T2 return) 1C

Eligible dividends received from connected corporations (total amounts from column G with code 1 in column B) . . . . . . . . . . . . . . . 1D

Eligible dividends received from non-connected corporations (total amounts from column G with no code in column B) . . . . . . . . . . . 1E

1 If taxable dividends are received, enter the amount in column F, but if the corporation is not subject to Part IV tax (such as a public corporation other than
a subject corporation as defined in subsection 186(3)), enter "0" in column K (and column J, if applicable). Life insurers are not subject to Part IV tax on
subsection 138(6) dividends.

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Protected B when completed

Part 1 – Dividends received in the tax year (continued)

H I J K L
Total taxable dividends paid by Dividend refund of the connected Part IV tax for eligible dividends. Part IV tax before deductions. Part IV tax before deductions on
connected payer corporation (for payer corporation (for tax year in Dividends (from column G) Dividends (from column F) taxable dividends received from
tax year in column D) column D) 2 multiplied by 38 1/3% 3 multiplied by 38 1/3% 4 connected corporations 5
250 260 265 275 280

Total of column L
(enter amount on line 2E in Part 2)
Part IV tax before deductions on taxable dividends received from connected corporations
(total amounts from column K with code 1 in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1F

Part IV tax before deductions on taxable dividends received from non-connected corporations
(total amounts from column K with no code in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1G

Subtotal (amount 1F plus amount 1G) ► 1H

Part IV tax on eligible dividends received from connected corporations (total amounts from column J
with code 1 in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1I

Part IV tax on eligible dividends received from non-connected corporations (total amounts from
column J with no code in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1J

Subtotal (amount 1I plus amount 1J) ► 1K

Part IV tax before deductions on taxable dividends (other than eligible dividends) (amount 1H minus amount 1K) . . . . . . . . . . . . . . 1L

2 If the connected payer corporation's tax year ends after the corporation's balance-due day for the tax year (two or three months, as applicable), you have to
estimate the payer's dividend refund when you calculate the corporation's Part IV tax payable.
3 For eligible dividends received from connected corporations, Part IV tax on dividends is equal to column I divided by column H multiplied by column G.
4 For taxable dividends received from connected corporations, Part IV tax on dividends is equal to column I divided by column H multiplied by column F.
5 For the purpose of calculating your eligible refundable dividend tax on hand (ERDTOH), Part IV tax on taxable dividends received from connected
corporations (with a tax year starting after 2018) is equal to the sum of Part IV tax on eligible dividends and non-eligible dividends received from
connected corporations to the extent that such dividends caused a dividend refund to those corporations from their ERDTOH.
Part IV tax before deductions on taxable dividends received from connected corporations for purposes of column L is the sum of (i) and (ii), where
(i) Part IV tax on eligible dividends received from connected corporations is equal to amount CC of the connected payer corporation (on page 7
of the T2 return) divided by line 465 of the connected payer corporation, multiplied by column G; and

(ii) Part IV tax on non-eligible dividends received from connected corporations is equal to amount II of the connected payer corporation
(on page 7 of the T2 return) divided by line 470 of the connected payer corporation, multiplied by the difference between columns F and G.

Part 2 – Calculation of Part IV tax payable

Part IV tax on dividends received before deductions (amount 1H in part 1) . . . . . . . . . . . . . . . . . . . . . 2A

Part IV.I tax payable on dividends subject to Part IV tax (from line 360 of Schedule 43) . . . . . . 320

Subtotal (amount 2A minus line 320) ► 2B

Current-year non-capital loss claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330

Non-capital losses from previous years claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . 335

Current-year farm loss claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340

Farm losses from previous years claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . . . . . . 345

Total losses applied against Part IV tax (total of lines 330 to 345) 2C

Amount 2C multiplied by 38 1/3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2D

Part IV tax payable (amount 2B minus amount 2D, if negative enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
(enter amount on line 712 of the T2 return)

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Part 2 – Calculation of Part IV tax payable (continued)

If your tax year begins after 2018, complete the following part to determine the required amount of Part IV taxes payable in order to calculate the
eligible refundable dividend tax on hand (ERDTOH) at the end of the tax year.

Part IV tax before deductions on taxable dividends received from connected corporations (total of column L in part 1) . . . . . . . . . . . . 2E

Amount 4A from Schedule 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2F

Part IV tax payable on taxable dividends received from connected corporations

(amount 2E minus amount 2F, if negative enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2G
(enter at amount C on page 7 of the T2 return)

Part IV tax on eligible dividends received from non-connected corporations (amount 1J in part 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2H

Amount 4C from Schedule 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2I

Part IV tax payable on taxable dividends received from non-connected corporations

(amount 2H minus amount 2I, if negative enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2J
(enter at amount D on page 7 of the T2 return)

Part 3 – Taxable dividends paid in the tax year that qualify for a dividend refund
If your corporation's tax year-end is different than that of the recipient corporation with which you are connected, your corporation could have paid
dividends in more than one tax year of the recipient corporation. If so, use a separate line to provide the information according to each tax year of the
recipient corporation.
M N O P Q
Name of recipient corporation with which you are Business number Tax year-end of recipient Taxable dividends Eligible dividends
connected corporation in which the paid to recipient included in
dividends in column P were corporations with column P
received YYYYMMDD which you are
connected
400 410 420 430 440

(Total of column P) (Total of column Q)

Total taxable dividends paid in the tax year to other than connected corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450

Eligible dividends included in line 450 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455

Total taxable dividends paid in the tax year that qualify for a dividend refund (total of column P plus line 450) . . . . . . . . . . . . . 460

Total eligible dividends paid in the tax year (total of column Q plus line 455) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 465

Total non-eligible taxable dividends paid in the tax year (line 460 minus line 465) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 470
Complete this part to determine the following amounts in order to calculate the dividend refund.

Line 465 multiplied by 38 1/3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3A

(enter at amount AA on page 7 of the T2 return)

Line 470 multiplied by 38 1/3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3B

(enter at amount DD on page 7 of the T2 return)

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Part 4 – Total dividends paid in the tax year

Complete this part if the total taxable dividends paid in the tax year that qualify for a dividend refund (line 460) is different from the total dividends paid
in the tax year.

Total dividends paid in the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

Dividends paid out of capital dividend account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510

Capital gains dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 520

Dividends paid on shares described in subsection 129(1.2) . . . . . . . . . . . . . . . . . . . . . . . . . 530

Taxable dividends paid to a controlling corporation that was bankrupt at

any time in the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 540

Subtotal (total of lines 510 to 540) ► 4A

Total taxable dividends paid in the tax year that qualify for a dividend refund (Line 500 minus amount 4A) . . . . . . . . . . . . . . . 4B

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