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What are the arguments against corporate double taxation?

Arguments against corporate double taxation indicate that as shareholders are the owners of a corporation in which corporate tax is levied on profits attributable to the owners, income distributed to them as dividends and taxed with dividend tax at a personal level represents the same income stream being taxed twice.

What is double taxation?

Double taxation can also occur in an international trade or investment context when the same income is taxed in two different countries. Double taxation refers to income tax being paid twice on the same source of income. This can occur when income is taxed at both the corporate level and the personal level, as in the case of stock dividends.

Why do corporations pay double tax?

Double taxation often occurs because corporations are considered separate legal entities from their shareholders. As such, corporations pay taxes on their annual earnings, just like individuals.

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