Where are intercompany dividends paid entered on Schedule 3 of the T2? They are not taxable nor do they qualify for a dividend refund.


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You always need to report the movement of monies between corporation for transparency purposes and to also properly assign dividend income shown in the financials.

They are non-taxable under section 112 but must be included for reporting purposes.

You would enter them as income deductible from net income on Box F of the first section. Then you need the business number of the connected corporation and then whatever the amount was dividend income from the connected corporation goes in Box H. That should make the dividend non taxable and satisfy the reporting requirements.

Hope this helps.

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