Double taxation for dividends

In the 1966's reform of the Law of Income Taxes was included for the first time the obligation to the dividends, regime that, with some modifications in the time, remained effective until the reformation published in the Official Gazette N degrees 4.300 (Extraordinary) of August 13, 1991, when it was eliminated. The regime caused a double taxation, because the generating business of the enrichment and the shareholders beneficiaries paid tax on the same profit. In 1999 the obligation to the dividends was created again, and although the legislator avoided to incur in the double taxation, he failed to avoid it fully, like it is shown in this paper.