The Curious Case of the Indian Dividend Distribution Tax – Inverse Split-Rates on Corporate Profits? Or Source-Agnostic Levy?
4 Pages Posted: 26 Aug 2019
Date Written: August 22, 2019
Is the Indian dividend distribution tax an inverse split-rate on corporate profits, thereby limiting the extent to which profits can be distributed to shareholders? Or is it a source-agnostic levy, which could also be paid out of a company's capital if all of the company's profits were distributed to shareholders? This article examines these fundamental questions about the Indian dividend distribution tax.
Keywords: Tax policy, tax law design, dividends, secondary taxes, corporate taxation, dividend distribution tax, international tax, taxation
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