double taxation

(redirected from Double Taxation Avoidance Agreement)
Also found in: Legal, Acronyms.

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 ?
As you know, I am here primarily to sign the Double Taxation Avoidance Agreement (DTAA) as was agreed during the visit of Prime Minister of Nepal to India on October 20-23, 2011.
We have sought information on some investments made from Cyprus to India under the double taxation avoidance agreement and given them two months time," the official was quoted as saying on Tuesday by the Press Trust of India.
The Ministers of Finance of Macedonia and Saudi Arabia, Zoran Stavreski and Ibrahim bin Abdulaziz bin Abdullah Al-Assaf, signed a double taxation avoidance agreement which facilitates further and encourages bilateral cooperation and trade.
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.
New Delhi has also assured Iran that it will soon ink the bilateral Double Taxation Avoidance Agreement and the Bilateral Investment Protection Agreement.
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 assurance comes ahead of the next round of bilateral talks on the revision of the decades- old double taxation avoidance agreement later this month.
India and Kuwait signed the Double Taxation Avoidance Agreement (DTAA) signed in 2006 for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income, through the Protocol.
According to experts, the Double Taxation Avoidance Agreement ( DTAA) with Singapore has provided comfort to foreign investors based there to invest in India as the limitation- ofbenefit clause is not applicable to companies which have paid their tax in Singapore.