Corporations compute their dividends received deduction by multiplying the dividend amount by 10 percent, 50 percent, or 100percent, depending on their ownership in the distributing corporation's stock.

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Corporations compute their dividends received deduction (DRD) by multiplying the dividend amount by percentages that generally are 50%, 65%, or 100%, depending on their ownership stake in the distributing corporation. The specific percentages can vary based on tax law changes, but 10% is not a standard rate for the DRD.

Corporations Compute Their Dividends Received Deduction by Multiplying the Dividend