Are dividends paid tax deductible? 1.61K viewsTax0 Guest60 0 Comments If a company pays dividends during the year, can it use the dividend as an expense to reduce it’s tax liability? 1 AnswerActiveVotedNewestOldest 0 Guest60 Posted 0 Comments No dividends are not tax deductible. Dividends is just a way that is used to distribute the profits that the company has generated. Dividends are not expenses though so they are not tax deductible. You are viewing 1 out of 1 answers, click here to view all answers. Register or Login Search for: