Effective tax rate on dividends

[FrankCFA]

Schweser B2.P300 - Effective tax rate on dividends

We have double taxation, split-rate, and imputation system. Which one is the most common system in the real world.

[Sidtoaf]

Here in India, we follow a Double tax system.

The way it works is company pays tax on its profits, before distributing any dividends, the company further deducts tax at source at 15%.

There is 1/6 of the world for you.

But I guess, the Double Taxation system is more common.

[FrankCFA]

@Sidtoaf

Here in India, we follow a Double tax system.

The way it works is company pays tax on its profits, before distributing any dividends, the company further deducts tax at source at 15%.

There is 1/6 of the world for you.

But I guess, the Double Taxation system is more common.

Thanks! Does U.S. also follow double tax system?

[S2000magician]

@FrankCFA

@Sidtoaf

Here in India, we follow a Double tax system.

The way it works is company pays tax on its profits, before distributing any dividends, the company further deducts tax at source at 15%.

There is 1/6 of the world for you.

But I guess, the Double Taxation system is more common.

Thanks! Does U.S. also follow double tax system?

Yes.