Don't Pay CPP Through Dividend Income - Read This if You Are Self Employed

I'm not an accountant, so deal directly with your accountant on these types of matters.  If you need an accountant I can refer.  

1. All of our revenue goes through a corporation
2. We claim expenses against revenue
3. We do not pay salaries to ourselves
4. We pay corporate taxes based on net income
5. We pay out dividends to ourselves

All of our income is dividends.

CPP is based on personal income and not dividend income.   

If you are self employed it's up to $4500/year in savings.  If your income splitting, it doubles to $9000/year.  

This way we save saving $9,000/year in CPP payments.

***Numbers are approximate