Ah, that makes sense. TIL. I'm Canadian, and we have something similar. But it only applies to corporations that are resident in Canada (where Canadian corpora

Ah, that makes sense. TIL. I'm Canadian, and we have something similar. But it only applies to corporations that are resident in Canada (where Canadian corporate taxes are paid on retained earnings?). I think the intent is to recognize the tax already paid on earnings, not necessarily to make it like taxable like capital gains... but it's all a wash. It seems that qualified dividends in U.S. are limited in similar ways. My confusion makes sense in retrospect: I have generally held stock from U.S. markets, so I don't often benefit from the credit. I believe dividends were always counted directly as taxable income. So... supposing that you're in the U.S. and your stock isn't U.S.-based, wouldn't buybacks always be more tax favorable?