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 Philippines currently has existing double taxation agreements with several countries, including the United States, Switzerland, the United Kingdom and Northern Ireland, United Arab Emirates, Thailand, Australia and Germany.
Speaking to the Nigerian Tribune exclusively, a boat operator who identified himself as Niyi Obadeyi explained that if truly the MoU is not meant to legalise double taxation, officials of both agencies need not be at the jetty side when ferry operators are loading.
Tionko said yesterday that the two nations recently held their first round of negotiations and discussed ways to avoid double taxation on income and capital gains as well as the prevention of tax evasion and avoidance.
The Philippineshas existing double taxation treaties(DTAs)withseveral countries, including the United States, Switzerland, the United Kingdom and Northern Ireland, United Arab Emirates, Thailand, Australia and Germany.
The eagerly awaited new system will help to find solutions for tax disputes between Member States that can arise from the interpretation and application of international agreements and conventions providing for the elimination of double taxation. Estimates show that 2000 such disputes are currently pending in the EU, out of which around 900 are over 2 years old.
Tunisia made available needed means and mechanisms to face up to tax avoidance, double taxation, etc.
The UAE, represented by the Ministry of Finance, MoF, signed the agreement with Saudi Arabia on the avoidance of double taxation on income and capital and the prevention of tax evasion, at the Saudi Ministry of Finance in Jeddah in May 2018, reported Emirates news agency Wam.
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.
"The head of state has signed the law of the Republic of Kazakhstan "On ratification of the Protocol between the Government of Kazakhstan and the Government of Uzbekistan on making changes and amendments to the agreement between the governments of Kazakhstan and Uzbekistan on avoidance of double taxation of incomes and property, dated June 12, 1996," the message reads.
ISLAMABAD -- Switzerland has yet to ratify the revised convention on Avoidance of Double Taxation with Pakistan, which is delaying the exchange of information between the two countries.
Kenya and Portugal on Tuesday signed an agreement for avoidance of double taxation.
The Mazhilis of Kazakhstan today has approved ratification of the amendments in the agreement between the Governments of Kazakhstan and Kyrgyzstan on double taxation avoidance.