How does NaviPlan Standard apply the average tax rate to the different types of investment income?
NaviPlan Standard applies the average tax rate to the taxable portion of the various investment incomes. • For capital gains, the taxable portion is now 50%. • Dividends are first grossed up by 25% to obtain the taxable amount, then the average tax rate is applied, and finally, a dividend tax credit of 13 1/3% of the taxable amount is subtracted from the amount of tax calculated. • The average tax rate is applied to the total amount of interest and other investment income.
