# Schedule 3 - Dividend

**URL:** https://www.protaxcommunity.com/t/schedule-3-dividend/9343
**Category:** Tax Topics
**Created:** [October 10, 2024, 10:10pm UTC](https://www.protaxcommunity.com/t/schedule-3-dividend/9343 "2024-10-10T22:10:53Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![healthymanccc](https://avatars.discourse-cdn.com/v4/letter/h/779978/32.png) [@healthymanccc](https://www.protaxcommunity.com/u/healthymanccc)
#### Post date: [October 10, 2024, 10:10pm UTC](https://www.protaxcommunity.com/t/schedule-3-dividend/9343/1 "2024-10-10T22:10:53Z")

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Working on T2.

Corporation paid a **dividend** (non-eligible - the corporation earned under $500,000 of net income) to its sole shareholder.

Screenshot - **Schedule 3:**

**Part 3**

 ![s3](https://us1.discourse-cdn.com/flex016/uploads/taxcycle/original/2X/f/f24b4d46334462795b668065ede215386fc2ebc9.jpeg)

**Part 4**

 ![s3 2](https://us1.discourse-cdn.com/flex016/uploads/taxcycle/original/2X/8/8e624fe66e6fce4dae0ed8eb53dfa69634738b84.jpeg)

Is the calculation in **Part 4** correct ($0.00)? If so can someone please explain the logic?

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### Author: ![atul](https://avatars.discourse-cdn.com/v4/letter/a/f14d63/32.png) [@atul](https://www.protaxcommunity.com/u/atul)
#### Post date: [October 10, 2024, 11:27pm UTC](https://www.protaxcommunity.com/t/schedule-3-dividend/9343/2 "2024-10-10T23:27:03Z")

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Part IV Tax is only on dividends (and other passive incomes) earned. Not on the payments. However, if your corp had Part IV tax liability, then the dividends paid would automatically trigger (38.33%) reduction in Part IV tax.

Atul

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### Author: ![Nezzer](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/nezzer/32/3845_2.png) [@Nezzer](https://www.protaxcommunity.com/u/Nezzer)
#### Post date: [October 11, 2024, 11:34pm UTC](https://www.protaxcommunity.com/t/schedule-3-dividend/9343/3 "2024-10-11T23:34:02Z")

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S3 Part 4 is applicable only if the dividends paid generate a dividend refund. Dividend refund comes from RDTOH - if there are no RDTOH balances (ERDTOH or NERDTOH), then S3 Part 4 should show all zeroes.

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### Author: ![healthymanccc](https://avatars.discourse-cdn.com/v4/letter/h/779978/32.png) [@healthymanccc](https://www.protaxcommunity.com/u/healthymanccc)
#### Post date: [October 17, 2024, 5:32pm UTC](https://www.protaxcommunity.com/t/schedule-3-dividend/9343/4 "2024-10-17T17:32:28Z")

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@atul @Nezzer thank you very much for your helpful replies!