Dividend Tax Info
Tax treatment of dividends differs for shareholders depending on their country of residence. For more information, please review the sections below:
Canadian Shareholders
Unless otherwise indicated, common and preferred share dividends paid by Enbridge Inc. (ENB), either in Cdn or US dollars, will be designated as “eligible dividends” for Canadian income tax purposes except as described below*. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend credit.
Canadian beneficial shareholders who received dividends outside of an TFSA, RRSP, RRIF or DPSP should receive a T5 Supplementary slip from their brokerage firm or intermediary. Canadian registered shareholders will receive a T5 Supplementary slip from Computershare Trust Company of Canada. The deadline for issuance of T5 Supplementary slips is on or before the last day of February following the calendar year to which the information applies. Please refer questions regarding the T5 slips directly to your brokerage firm or Computershare Trust Company of Canada at 1-800-276-9479. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.
*Exceptions to the above:
September 1, 2013 Enbridge Inc. Common Share Dividend:
Please note that a portion of the $0.3150 September 1, 2013 Enbridge Inc. Common Share dividend was not designated as an “eligible dividend” pursuant to Subsection 89(14) of the Income Tax Act. The portion that was not designated as an “eligible dividend” under Canadian tax rules is $0.180382 per share. The remaining portion of the dividend, $0.134618 per share was designated as an “eligible dividend” for Canadian federal income tax purposes. The whole dividend will still be a “qualified dividend” for U.S. tax purposes.
For more details please refer to: 2013 ENB Q2 Div Tax Q&A (PDF 74 KB)
June 1, 2012 Enbridge Inc. Common Share Dividend:
Please note that a portion of the $0.2825 June 1, 2012 Enbridge Inc. Common Share dividend was not designated as an “eligible dividend” pursuant to Subsection 89(14) of the Income Tax Act. The portion that was not designated as an “eligible dividend” under Canadian tax rules was $0.237118 per share. The remaining portion of the dividend, $0.045382 per share was designated as an “eligible dividend” for Canadian federal income tax purposes. The whole dividend was still a “qualified dividend” for U.S. tax purposes.
For more details please refer to: 2012 ENB Q1 Div Tax Q&A (PDF 76 KB)
Non-Resident Shareholders
Common share dividends paid by Enbridge Inc. will be subject to Canadian withholding tax at the rate of 25% unless the rate is reduced under the provisions of a tax treaty between Canada and the non-resident shareholder’s jurisdiction of residence. Where the non-resident shareholder is a United States resident entitled to benefits under the Canada-U.S. tax treaty, the rate of Canadian withholding tax on dividends is generally reduced to 15%. You may be eligible to claim a credit or deduction against your local taxes with respect to these Canadian non-resident withholding taxes.
Enbridge Inc. is considered to be “a qualified foreign corporation” and the dividends paid on its common shares are considered to be “qualified dividends” as those terms are defined in the U.S. Internal Revenue Code”. If you have any questions regarding the taxation of Canadian dividends in your local jurisdiction, please contact your local tax advisor.
Attention: Tax Information for U.S. Shareholders
Registered Shareholders:
Dividends paid to U.S. shareholders are subject to a 15% withholding tax; however, some U.S. shareholders may have experienced up to a 53% withholding tax on their dividend payment on June 1st if all of the required tax forms were not completed (25% deducted to the Canada Revenue Agency and 28% deducted to the IRS). To avoid any future withholdings on your next dividend, please return a completed NR301 and W9 tax form to the Computershare Trust Company of Canada at the address listed below.
Computershare Trust Company of Canada
100 University Avenue, 8th Floor
Toronto, Ontario
M5J 2Y1
Toll free: 1-866-276-9479 or 1-(514) 982-8696
The forms can be downloaded from the links below.
- NR301 – Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer
- W-9 – Request for Taxpayer Identification Number and Certification
Beneficial Shareholders:
If you hold your shares through a broker or bank, please contact your representative for further information.
