A dividend tax is an income tax in dividend income received by shareholders of the company. In quite a few jurisdictions, companies must withhold at least the standard tax, paying this on the national revenue authorities and coughing up only the balance on the shareholders. Depending for the jurisdiction dividend income as well as interest income, gathered rents, or other “unearned income” are often taxed and is the subject of recurring debate as to whether or not these taxes ought to be eliminated.
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