Profit distribution – Frequently asked questions

Profit distribution – Frequently asked questions

Q. Do all Caisses distribute profits?

A. Over the last few years, most of our Caisses distributed surplus earnings to their members.

The money paid out in profit distribution comes from the Caisses surplus earnings over a given fiscal year. This means that if a Caisse does not have surplus earnings, it will be unable to distribute profits.

Q. Are profit distributions taxable?

A. Whether profit distributions are taxable or not depends on the product or service they apply to.

  • Loans and service charges
    Profit distributions are not taxable and no tax form is issued, unless the interest on the loans or service charges was considered a deductible expense.
  • Savings on Caisse accounts 
    When annual interest income, including profit distributions, exceeds $50, the Caisse reports the earnings on a T5. These dividends are taxable regardless of the amount and whether or not a tax form was issued.