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do us mutual funds and etfs pay taxes on dividends?
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mutual funds don't pay taxes themselves, they distribute any dividends or capital gains to the shareholders. thus, if you hold a mutual fund in a tax-advantaged account like a 401k or ira then the distribution isn't a taxable event while in a regular taxable account you would have to pay taxes on the distributions. from forbes: there can be foreign companies on us stock exchanges that would still work the same way. unilever for example is an anglo-dutch multinational listed on the nyse as "un."
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