For corporate stockholders, the dividends received that are exempt from taxation. A corporation that owns less than 20% of the stock in another company can exclude 70% of the dividends received from taxable income. When between 20% and 79% of the stock of another company is owned, 75% of the dividends received from that firm can be excluded from taxation. When 80% or more of another company's stock is owned, all of the dividends received from that firm can be excluded from taxation. Dividend exclusion is not applicable to individual investors.
