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 ?
Switzerland's finance minister had stated that the 2011 Double Taxation Avoidance Agreement, under which India had sought information, applies prospectively, thus ruling out access to information about accounts opened before that date.
India and Bhutan have signed a Double Taxation Avoidance Agreement (DTAA) to exchange information on banking and help check tax evasion.
This is envisaged by the Double Taxation Avoidance Agreement, which Bulgaria and Switzerland signed on September 19, the finance minister announced in parliament.
Abu Dhabi An amended double taxation avoidance agreement (DTAA) between the UAE and India is likely to plug the loopholes in a previous agreement that enabled tax authorities in India to sometimes unnecessarily go after non-resident businessmen and individuals for alleged tax evasion, say experts.
The UAE Ministry of Finance said it has signed a double taxation avoidance agreement with Switzerland in line with the emirates' efforts to enhance global financial relations.
The Malaysian Ministry of Finance said in a statement on Wednesday that the two countries had agreed to update article 27 (exchange of information) in the existing double taxation avoidance agreement (DTAA) between Qatar and Malaysia.
Taiwan also signed a new aviation agreement with the United Kingdom and a double taxation avoidance agreement with Hungary.
The president, who departed for Mongolia on Wednesday to attend the ASEM, discussed on the sidelines with Elbegdorj the possibility of a double taxation avoidance agreement between the two countries, ways to strengthen bilateral relations, and Mongolia-EU relations, the announcement said.
Moreover, changes to Mauritius's Double Taxation Avoidance Agreement (DTAA) with India, due to come into effect in April 2017, will weaken an industry that contributes to approximately 9 per cent of GDP and 15 per cent in net foreign inflows annually, it said.
GENERAL ANTI- AVOIDANCE rule ( Gaar) will override provisions of the Double Taxation Avoidance Agreement ( DTAA) if they are abused.
Towards creation of an optimal support framework at both ends, both sides noted that the Revised Double Taxation Avoidance Agreement signed in January 2013 had come into force, the MOU on Cooperation in the Fields of Textiles, Handloom, Powerloom and SMEs was signed in September 2013 and the Joint Working Group under this MOU would meet shortly and the Agreement on Cooperation and Mutual Assistance in Customs Matters would also be signed shortly.
The Indian Central Board of Direct Taxes (CBDT) in June last year had notified rules under which an entity based in a "notified jurisdictional area" will have to give an undertaking to share information in a prescribed format as part of legal agreements such as the Double Taxation Avoidance Agreement (DTAA) and Tax Information Exchange Agreement (TIEA) with other countries.