The European Union does not directly tax the dividends of its companies located abroad. Taxation within the EU is primarily a matter for individual member states, and the EU itself does not levy taxes on dividends or any other form of income. Each member state has its own tax system and rules regarding the taxation of dividends, including those from foreign sources.

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The European Union

Question 30

Multiple Choice

The European Union

A) taxes the dividends of its companies located abroad based on the tax equalization principle
B) taxes the dividends of its companies located abroad resulting in double taxation
C) taxes the dividends of its companies located abroad based on the principle of level playing field
D) does not tax the dividends of its companies located abroad
E) taxes the dividends of its companies located abroad at preferential rates

Correct Answer: