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 ?
Following the expanded talks, the King and President Rahmon witnessed the signing of two cooperation agreements between the two countries on enhancing and protecting mutual investments as well as avoiding dual taxation as well as tax evasion.
Kasbati, FCA, Member, ICAP Taxation Committee, highlighted 5 major steps to resolve the matters: Avoid Dual Taxation - FED and Provincial Taxes e.g.
A U.S.-Kazakhstan Bilateral Investment Treaty and a Treaty on the Avoidance of Dual Taxation have been in place since 1994 and 1996, respectively.
The Saudi side stressed importance of avoiding dual taxation. They agreed on the availability of the requirements of maritime safety in accordance with international standards and commitment to overcoming the difficulties faced by navigators, besides the importance of activating the agreements in the fields of land and sea.
Jonker and Zanden, in their history of Royal Dutch Shell, an Anglo-Dutch multinational oil company, wrote that "during and after the First World War, tax became an overriding consideration in the administrative organization of the Group." They also wrote that "the spread of income and profit taxation around the world meant that in order to avoid dual taxation the Group had to set up separate companies nearly everywhere." Royal Dutch Shell converted a number of branch offices into subsidiaries in the interwar period (e.g.
Under this particular proposal, countries with which Portugal shares a Dual Taxation Agreement, which include most western nations, would be able to solicit access to Portuguese bank accounts or from other financial institutions.
The company could also be subject to dual taxation in the intervening years, resulting in back taxes due with interest and penalties.
(79) of 2013 on an agreement signed between the UAE and Mexico on preventing dual taxation and evasion of income tax and the attached protocol; and federal decree No.
The Chinese Ambassador said that the two friendly countries are set to sign bilateral cooperation agreements related to health, education, banking and avoidance of dual taxation.
The Armenian Government approved on Thursday an Armenian-German agreement on avoidance of dual taxation of
We have long advocated for a move away from Worcester's system of dual taxation, under which owners of commercial and industrial property pay significantly more than owners of residential property.
58 of 2012 endorsing the agreement on the avoidance of dual taxation and prevention of financial evasion with regard to income tax between governments of Qatar and Albania, signed in Tirana on 18.10.2011.

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