kodiak22!
New Member

Is a DPSP tax deductible?

 

Credits and deductions

No, As per CRA, DPSP (Deferred Profit Sharing Plan) isn't tax-deductible because it is an employer-sponsored profit-sharing plan that is registered with the CRA. Only employers can contribute to DPSP and can claim tax deductions for contributions. 

 

Whereas, employees do not pay tax on the contributions made to DPSP which are made for their benefit. The contributions and investment earnings accumulate tax-free while they are in a DPSP, but are included in income for tax purposes when withdrawn

 

For more info, please see the link, https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/deferred-profit...

 

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