100% of cash dividends paid by the subsidiary to the parent are tax-free.
A cash dividend is a payment made from the corporation's current earnings or accumulated profits to stockholders in general. Instead of being distributed as a stock dividend or another kind of value, cash dividends are paid in cash.
A cash dividend is a sum of money distributed on a regular basis to stockholders by a firm (as opposed to in stock or any other form)
Cash dividends are frequently distributed on a regular schedule, like monthly or quarterly, but they can also be one-time payments, as after a settlement, on occasion.
Learn more about cash dividends here:
https://brainly.com/question/20573835
#SPJ4
