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double taxation
(redirected from Double Taxation Avoidance Agreement)

   Also found in: Legal, Acronyms, Wikipedia 0.01 sec.
Double taxation
Government taxation of the same money twice; specifically, earnings taxed first at the corporate level and then again as dividends at the stockholder level.

Double Taxation
A situation in which the same earnings are taxed twice. One of the most common examples of double taxation occurs when a publicly-traded company pays corporate taxes on its earnings. It then passes on some of those earnings to shareholders as dividends, on which they must pay individual income tax or capital gains tax. Various means exist to reduce double taxation. See also: Tax avoidance.

double taxation
Taxation of the same income twice by the same taxing authority. It is generally used to refer to the taxation of dividends that are taxed once at the corporate level (as income before dividends are declared) and again at the personal level (when the dividends are received).

double taxation

A situation said to exist when a corporation must pay taxes on income, make dividend payments to shareholders on after-tax dollars, and then the shareholders must again pay taxes on the dividends. This is the situation with normal corporations, called C-corporations, that do not qualify for S-corporation (small corporation) status. S-corporations file reports allocating pro rata shares of all income to the individual shareholders, who then pay taxes on that number. The corporation itself does not pay any taxes.



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Both sides also agreed to expedite talks for finalization of a double taxation avoidance agreement.
These relate to the concept of minimum alternative tax ( MAT) based on gross assets instead of profit, taxation of the salaried class, capital gains tax in the case of non- residents and the Income Tax Act and the Double Taxation Avoidance Agreement ( DTAA).
There were many reasons for this move, Smith explained, and as much as it may sound as a clichE[umlaut], AVG's principals chose Cyprus because it was a new member of the European Union, it has a favourable tax regime with a multitude of double taxation avoidance agreements, a sophisticated services sector, a great talent pool of highly educated local staff and a corporate culture based on English Law.
 
 
 
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