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 ?
New Delhi [India], Nov 26 ( ANI ): The Governments of India and China on Monday amended the Double Taxation Avoidance Agreement (DTAA) for avoidance of double taxation, and prevention of fiscal evasion with respect to taxes on income.
- Shura Council's committee approves double taxation avoidance agreement with Thailand.
As per the memo, the two sides will foster cooperation as regards removing all tax hurdles blocking investments, applying the double taxation avoidance agreement, settling any conflict that might emerge while applying the agreement on encouraging investments.
He referred to the double taxation avoidance agreement the two sides signed last year, pointing out that India offers excellent investment opportunities for Cypriot entrepreneurs.
THE Double Taxation Avoidance Agreement ( DTAA) between India and Cyprus that provides for source- based taxation of capital gains on transfer of shares instead of one based on residence got the Cabinet's approval on Wednesday.
FBR member and spokesman Dr Iqbal said that the FBR team will move to Bern for a second round of talks with Swiss tax authorities to amend the existing double taxation avoidance agreement.
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.
In Year 2000 bilateral communications on cooperation based on the 1980 landmark agreement commenced along with a process for a new Double Taxation Avoidance Agreement between the two countries, but then slowed down.
The double taxation avoidance agreement updates an existing protocol and expands the network of similar deals, based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital, in order to help boost foreign direct investments to Cyprus.
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.
The double taxation avoidance agreement is a way to attract foreign direct investments into the country, since it enables foreign firms to make investments into the national economy knowing they will pay taxes in one country, not twice.
Dr Fakhro said a number of agreements and memoranda of understanding have been entered into between the two countries over the years, including a Double Taxation Avoidance Agreement; a memorandum of understanding on economic, trade and technical co-operation, signed in 2009; an agreement of co-operation with the Federation of Chamber of Commerce and Industry of Sri Lanka (FCCISL): an agreement with FCCISL for the establishment of a joint business council, as well as a co-operation agreement between BCCI and the Sri Lanka Chamber of Commerce, signed in 2007.