What best describes how corporations are taxed on dividend income?

Corporations are typically taxed on dividend income at the corporate tax rate when they earn profits. However, when these profits are distributed as dividends to shareholders, they are taxed again at the individual level, leading to a phenomenon known as "double taxation." This means that the same income is taxed first at the corporate level and then again when received by shareholders. Some jurisdictions may offer tax credits or reduced rates on dividend income to mitigate this issue.