The following table illustrates the computation of the imputed dividend credit for an individual in 1993. The table illustrates the taxation of a shareholder with a deduction from investment income (such as interest expense) and the taxation of a shareholder with no deductions.
FIM FIM
TAXATION AT THE COMPANY LEVEL
Taxable income 100
Corporate income tax at 25% ( 25)
Net income after tax 75
Computation Of Shareholders' Taxable Dividend Income
Cash dividends received 75
Imputed tax credit of 1/3 of cash dividend 25
Taxable dividend income 100
Taxation Of Two Different Shareholders With 25% Tax Rate
Taxable dividend income 100 100
Deductions
