buksoPaying family members spouse children dividends
Not tax advice. General bookkeeping information only, checked against the official sources linked below (Canada Revenue Agency, IRS, provincial governments and Justice Laws) on Oct 17, 2026. Rules change; check with your accountant before you file.
Canada
Dividends from a private corporation paid to family members can be taxed at the top rate (the tax on split income, TOSI) unless an exclusion applies, for example the person works in the business an average of 20 hours a week, or owns at least 10% of votes and value and is 25 or older (not for service or professional corporations). Salary paid to a family member must be reasonable for the work actually done.
Official source: canada.ca