The corporate income tax is levied only on retained earnings with dividends paid out exempt from taxation.

Name: The corporate income tax is levied only on retained earnings with dividends paid out exempt from taxation.
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The corporate income tax is levied on the net income of a corporation, whether it is retained or distributed as dividends. However, dividends received by shareholders are typically taxed separately as personal income.

The Corporate Income Tax Is Levied Only on Retained Earnings