How to Pay Dividends: Completing the T5 Slip and Summary

How to Pay Dividends: Completing the T5 Slip and Summary

This post has been updated to reflect changes in 2019

If you are the owner of a corporation, you can choose to pay yourself (and other shareholders) dividends instead of a salary, or they can be paid in addition to a salary.  If you do decide to pay yourself dividends, it is important to ensure that you prepare the proper documentation for Revenue Canada (CRA) and if you live in Quebec, Revenue Quebec.  The documents are due by February 28th of the calendar year following the year in which the dividend was paid.  And although no taxes are due at the time of filing with the government, interest and penalties apply for late payment.  The documents that need to be filled out and returned to the CRA and MRQ are discussed below:

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