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integration

application of the same effective tax rate to income whether taxed to corporation or individual

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About integration

Integration is a feature of tax systems that apply the same effective tax rate to income no matter whether it is taxed inside the corporation or given to shareholders to be taxed as personal income. Integration may be partial or complete. Complete integration would treat corporate income as flowing through to shareholders, while partial integration only treats some income—often from dividends—this way. Integration systems have been implemented, often in the form of a dividend tax credit, in many national tax systems.

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