Free resources / Canadian business owners
Estimate the initial tax on interest earned inside your corporation, then see how a future dividend refund could change the corporate tax cost.
Use the worksheet ↓01 / Your figures
Example figures are prefilled. Replace them with your own; all amounts are Canadian dollars.
Money invested to earn interest. Retained earnings on your balance sheet may include assets other than cash.
Use the rate on your deposit or GIC. The 4% example is an assumption, not a current quote or expected market return.
Dividend refund scenario: $0 in dividends paid. Adjust to compare a possible refund.
02 / Your illustration
Ontario: 50.17% initial combined tax rate. The refund is conditional, not automatic. The final figure excludes personal tax and the cash paid out as dividends.
Find your specialist ↗Keep a copy for your accountant ↓2026 model · Reviewed September 22, 2026
Illustration only. Figures rounded to the nearest dollar.
Understand the calculation
One full year of domestic interest income in a CCPC with all income allocated to the selected province. No expenses, losses, credits, foreign income, capital gains or portfolio dividends. Assumes sufficient taxable income for the full refundable portion. No opening RDTOH balances or other refund sources. The potential refund is limited to this model’s new refundable tax and 38⅓% of non-eligible taxable dividends entered. Personal dividend tax is excluded. This is not an investment, insurance or dividend recommendation.
Bring these questions
Your next step
If you qualify, a PWG team member calls to confirm your information and understand your situation. Our team uses those details to identify a suitable licensed advisor in your jurisdiction. Your first consultation is free.
Find your specialistYour report includes your inputs, the calculation, assumptions and questions to discuss.
PRESERVE WEALTH GROUP Corporate interest tax & refunds Illustrative worksheet · CAD · model reviewed September 22, 2026 YOUR INPUTS Amount invested (CAD): 500,000 Annual interest rate (%): 4 Non-eligible taxable dividends paid (CAD): 0 Province: Ontario RESULTS (rounded to nearest dollar) Initial corporate tax on interest: $10,033 Annual interest income: $20,000 Potential refundable portion: $6,133 Refund in your dividend scenario: $0 Corporate tax after modeled refund: $10,033 Ontario: 50.17% initial combined tax rate. The refund is conditional, not automatic. The final figure excludes personal tax and the cash paid out as dividends. ASSUMPTIONS AND LIMITS One full year of domestic interest income in a CCPC with all income allocated to the selected province. No expenses, losses, credits, foreign income, capital gains or portfolio dividends. Assumes sufficient taxable income for the full refundable portion. No opening RDTOH balances or other refund sources. The potential refund is limited to this model’s new refundable tax and 38⅓% of non-eligible taxable dividends entered. Personal dividend tax is excluded. This is not an investment, insurance or dividend recommendation. QUESTIONS FOR YOUR ACCOUNTANT • What are our actual NERDTOH and ERDTOH balances? • What would the personal tax cost of a dividend be? • Would our investment income affect next year’s small business deduction? SOURCES CRA: provincial and territorial rates: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html CRA: federal business limit: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4012/t2-corporation-income-tax-guide-chapter-4-page-4-t2-return.html CRA: refundable portion of corporate tax: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4012/t2-corporation-income-tax-guide-chapter-6-pages-6-7-t2-return.html CRA: investment tax and dividend refunds: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4012/t2-corporation-income-tax-guide-chapter-7-page-8-t2-return.html Alberta: corporate tax rates: https://www.alberta.ca/about-tax-levy-rates-prescribed-interest-rates Quebec: general corporate tax rate: https://www.revenuquebec.ca/fr/entreprises/impots/impot-des-societes/ Find your specialist: https://preservewealthgroup.com/apply Educational estimate, not personalized financial or tax advice.
Go deeper / Beyond The Bottom Line
These worksheets do not compare product returns or establish that any strategy is suitable for you.
Reviewed September 22, 2026. Rates and rules can change. Your accountant should confirm the rules applicable to your tax year.
Your next step
Answer a few questions so we can review your needs and identify a suitable professional.
No cost to request an introduction.
