which of the following business type,has to pay double taxes to the government?
Answers
Answer:
corporation income is also subject to what is called “double taxation,” when the income of the business is distributed to the owners in the form of dividends, because dividends are taxable. Tax is paid first by the corporation on its income and then again by the owners on the dividends received.
Answer:
A corporation is required to pay corporate taxes on any profits it makes. Following that, corporations frequently provide their shareholders a percentage of their post-tax profits in the form of cash dividends, which is when double taxation occurs. Only C-Corporations, sometimes referred to as C-Corps or just "corporations," are a subject to double taxation. There are several tax payment options available to other business entities that don't require a second method of payment.
Explanation:
The only company structure that is subject to double taxation is C companies. Once more, the corporation only incurs tax obligations. Dividends distributed to investors who are then subjected to personal taxation after they have previously paid corporate tax are said to be subject to double taxation.
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