double taxation


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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

the TAXATION of INCOMES and PROFITS in both the country where they arise, and again where these incomes and profits are remitted to the income earner's home country. Such double taxation can be a significant deterrent to international labour and capital movements. For this reason many countries have negotiated double taxation agreements which limit taxation liability to the country in which the income is earned. Compare UNITARY TAXATION, WITHHOLDING TAX.

double taxation

the TAXATION OF INCOMES and PROFITS, first in the country where they arise and again when these incomes and profits are remitted to the income earner's home country. Such double taxation can be a significant deterrent to international labour and capital movements. For this reason,

many countries have negotiated double taxation agreements, which limit taxation liability to the country in which the income is earned. See UNITARY TAXATION, MIXER COMPANY.

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.

References in periodicals archive ?
The DTA clarifies the taxing rights of both countries on all forms of income flows arising from cross-border business activities, and minimizes the double taxation of such income, IRAS said on its website.
Agreement on avoidance of double taxation serves to relieve double taxation of income that is earned in one jurisdiction by a resident of the other jurisdiction.
New Delhi [India], Feb 22 ( ANI ): The Central Board of Direct Taxes (CBDT) on Thursday said the revised Double Taxation Avoidance Agreement (DTAA) between India and Kenya has been notified.
237, "Resolution Concurring in the Ratification of the Convention Between the Government of the Republic of the Philippines and the Government of the Kingdom of Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income";
The LCCI president said that double taxation is one of the major issues being faced by the business community, adding that tax on leading service industries with reasonable contribution should be imposed at concessionary rates to encourage them as these have the largest share in the country's economy.
To avoid 'double taxation' in this situation, the Philippines has negotiated double taxation treaties with [other] countries.
HE said: "The double taxation agreements are important for the UAE, allowing national air carriers to be exempt from taxes and government investments from origin-based taxes.
span style="font-size: small;">MoF has signed 173 bilateral agreements on the avoidance of double taxation and the encouragement and protection of investments with countries across the world.
The post Cyprus, Luxembourg finally sign double taxation argeement appeared first on Cyprus Mail .
The Government of UAE, represented by the Ministry of Finance (MoF), has signed an agreement with the United Kingdom on the avoidance of double taxation, The Khaleej Times has reported.
The business community of both sides will benefit from the convention on avoidance of double taxation and prevention of fiscal evasion between the two countries, source added to him.
NEW DELHI, Nov 18 (KUNA) -- The Indian Cabinet on Wednesday approved a protocol amending the Double Taxation Avoidance Agreement of 2006 between India and Kuwait for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.