Dividends paid to corporate shareholders have already been taxed once as corporate income.

Question

Quizplus · Accepted Answer

Dividends paid to corporate shareholders come from the after-tax profits of the corporation, which means that the corporate income has already been taxed once. When the dividends are given to shareholders, they may be subject to additional taxes at the individual level, depending on the tax laws of the country in which they reside.

Dividends Paid to Corporate Shareholders Have Already Been Taxed Once