How does double taxation of corporate income occur?

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How does double taxation of corporate income occur?

2007-01-07 06:23:05 · 2 answers · asked by **LIBERTY** 1 in Business & Finance ➔ Taxes ➔ Other - Taxes

2 answers

A corporation pays tax on its net income, but then when it distributes its income to its shareholders in the form of a dividend, the dividends are taxed on the shareholders' personal taxes. Hence, the same income are being taxed twice.

2007-01-07 07:00:32 · answer #1 · answered by jseah114 6 · 2⤊ 0⤋

Corporations pay taxes and when they pay you, you pay taxes. I don't think it's fair.

Personally, our corporation NEVER makes a profit so we don't have to pay 35% corp. taxes.

2007-01-09 10:13:30 · answer #2 · answered by Dizney 5 · 0⤊ 0⤋