Are dividend payouts taxed twice?
Asked 4 years ago
When a company you have invested in pays out dividends to their shareholders, does the government tax you twice? If so, why? Is there a way to avoid double taxation?
Andrew Moran
Monday, August 16, 2021
If you are an American. or Canadian investor, and you invest in an American or Canadian stock, you will not be taxed twice on your dividends.
That said, if you are an American investing in a Canadian stock, you will pay income tax twice on the same profits.
For companies, they are taxed twice. The first is at the company's year-end when it is mandated to pay taxes on earnings. The second is when shareholders receive their dividend payouts.
The solution is to buy companies in your home country.
Please follow our Community Guidelines
Related Articles
How a Stock Watching App Can Help You Keep Track of the Market
Sofia Thai
April 29, 2021
Fortrade's Pro Trader App Review: Features, Fees and Accounts
Andrew Moran
June 28, 2021
Comparing VFV ETF vs ZSP, VOO, SPY, VUN, XUU, XUS and More
Filip Dimkovski
October 7, 2021
Related Posts
Andrew Moran
Are RESP Withdrawals Taxable?
Sofia Thai
How Does Stock Market Tax Work?
Can't find what you're looking for?