Capital companies, after subjecting their profits to corporate income tax, may distribute all or part of their profits to their shareholders.
Depending on the status of the partner or his shareholding, the company will have to apply a withholding tax on capital income (RRC) when paying these dividends.
The partner/shareholder must then, as appropriate, adjust the remaining tax due when filing their tax return.
Partnerships do not distribute dividends. Partnership income, whether passed on to the partners or not, is taxed directly at the level of the partners. Partners must therefore declare their share of business profits when filing their income tax returns.
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