All dividend income received by a corporation is exempted from taxation.

Question

Quizplus · Accepted Answer

While some dividends may be eligible for preferential tax treatment, not all dividend income received by a corporation is exempt from taxation. The tax treatment of dividends can vary depending on several factors, such as the type of dividend (e.g. qualified vs non-qualified), the source of the dividend (e.g. domestic vs foreign), and the recipient of the dividend (e.g. individual vs corporation).

All Dividend Income Received by a Corporation Is Exempted from Taxation