4 ms·
Retained earnings are not taxed per se. A company pays taxes on profits. Whether the profits are distributed to shareholders or retained makes no difference w
by lottin 1y ago
Retained earnings are not taxed per se. A company pays taxes on profits. Whether the profits are distributed to shareholders or retained makes no difference whatsoever as far as taxes are concerned.
- nickff 1y agoThey are taxed; they are taxed because they are a subset of profits, which is a taxed category. They are not taxed more than other profits, but that doesn’t mean they’re ’not taxed’.
- blibble 1y agothey are not retained earnings by definition are the accumulation of net incomes, and net income by definition is post tax what went into the produce the retained earnings (profit) has been taxed but the retained earnings themselves are not subject to additional taxation (with a few exceptions)