buksoSalary vs dividends pay myself from
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
An owner of a corporation can be paid salary, dividends or both. Salary is a deductible expense for the corporation; CPP is deducted and payroll slips (T4) are issued, and it counts as earned income for RRSP room. Dividends are paid from after-tax profit, are not deductible by the corporation, have no CPP and are reported on a T5. The right mix depends on your situation, so ask your accountant.
Official source: canada.ca