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.
Corporations pay income taxes on their profits, and stockholders pay taxes on their dividends.
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.
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.
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.
As incentive for people to buy stock in that particular company
It's a nonsensical concept, because the majority of Americans are stockholders.
If you are receiving dividends from a life insurance policy, do you have to pay taxes and what %
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 profitable investment opportunities. A dividend is a payment made by a corporation to its stockholders. It is a usually a distribution of profit.
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....!
Yes everybody must pay taxes.
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.