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corporations must pay taxes on their incomes, profit is a form of income, and a dividend is a portion of corporate profits paid out to stockholders, and stockholders must pay personal income tax on those dividends.

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Q: Why must stockholders pay taxes on dividends?
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What does double taxation mean?

Corporations pay income taxes on their profits, and stockholders pay taxes on their dividends.


Can you pay dividends from contributed capital?

Dividends are deducted of the retained earnings which is part of the contributed capital and that must be done according to the dividends policy The dividend policy of a firm relates to management's propensity to distribute earnings to stockholders.


Do you have to pay taxes on stocks?

You have to pay taxes on the profits when you sell or otherwise dispose of the stocks. You also have to pay taxes on dividends.


What does Disney do with its money?

Pay dividends to its stockholders, pay salaries to its employees, pay taxes to various governments, make charitable donations, and invest some of it in company projects ... pretty much the same thing as any other company, really.


Why do comapanies have to pay income to stockholders as dividends?

As incentive for people to buy stock in that particular company


What do you think about stockholders don't have to pay taxes?

It's a nonsensical concept, because the majority of Americans are stockholders.


When are dividends taxed on life insurance?

If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %


When do you usually pay dividends?

Most companies pay out dividends quarterly. In order to earn a dividend, you must own stock in a company on one date, and they pay dividends on another date.


A decrease in a firm's willingness to pay dividends is likely to result from an increase in its what?

A decrease in a firm's willingness to pay dividends is likely to result from an increase in its profitable investment opportunities. A dividend is a payment made by a corporation to its stockholders. It is a usually a distribution of profit.


Meaning and factors effecting dividend policy?

A dividend policy is a company's approach to distributing profits back to its owners or stockholders. If a company is in a growth mode, it may decide that it will not pay dividends, but rather re-invest its profits (retained earnings) in the business. If a company does decide to pay dividends, it must then decide how often to do so, and at what rate. Large, well-established companies often pay dividends on a fixed schedule, but sometimes they also declare "special dividends." The payment of dividends impacts the perception of a company in financial markets, and it may also have a direct impact on its stock price. From-Gudlu Mohanty....!


Do veterans have to pay taxes?

Yes everybody must pay taxes.


What is corporate taxation?

C Corporation in the US must pay taxes on the net profits of the corporation before dividends and taxes. The corporate tax is a progressive tax and the tax brackets start at 15 percent then climb up to 35 percent.