How does the dividends received deduction alleviate triple taxation? Triple taxation can be understood with the following scenario: First tax: The subsidiary corporation pays tax on income earned Second tax: The parent corporation pays tax on dividends received from the subsidiary corporation Third tax: Shareholders are taxed on the dividends they receive from the parent
Tag: dividends-received deduction
Does Your Business Qualify for the Dividends-Received Deduction?
The “dividends-received deduction” is meant to reduce or get rid of an extra tax that a corporation has to pay when it gets dividends.