double taxation definition

double taxation

Situation where a country levies tax on an income that has already been taxed in the same or another country. For example, corporate profits are taxed when they are earned, and then taxed again as personal income when distributed to stockholders (shareholders) as dividend or (in case of an owner-manager) as salary.

Tax on tax. Sales tax (unlike a value added tax) is imposed on the gross price (seller's net cost price + sale tax paid on net price + seller's profit) of an item as it moves from one seller to the next purchaser.

double taxation is in the Accounting & Auditing and Economics, Politics, & Society subjects.

double taxation appears in the definitions of the following terms: real estate mortgage investment conduit (REMIC), value added tax (VAT), unlimited liability company, sole proprietorship, tax treaty and sales tax

double taxation appears in these other term: double taxation treaty

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