Capstone Infrastructure’s dividends are designated “eligible” dividends for purposes of the Income Tax Act (Canada). An enhanced dividend tax credit applies to eligible dividends paid to Canadian residents.
It is intended that dividends paid to U.S. investors will continue to be taxed for U.S. purposes as “qualified foreign dividends” to the extent that the dividends are paid out of current or accumulated earnings and profits, provided all U.S. shareholder-level requirements are met, including satisfaction of the prescribed hold periods. The Corporation is not required to issue Form 1099-DIVs.
Dividends payable by Capstone Infrastructure to non-resident shareholders are subject to Canadian withholding tax, which is generally at a rate of 25% unless the rate has been reduced pursuant to a tax treaty between Canada and the non-resident shareholder’s jurisdiction of residence. Shareholders resident in the U.S. are generally subject to a withholding tax of 15%.
Shareholders are advised to consult their own tax advisors with respect to their own particular circumstances.
Historical Tax Information