Tuesday, April 1, 2014

Double Taxation Avoidance Agreement

Double taxation is the levy of tax by 2 or more jurisdictions on the same declared income (in the case of income taxes), financial transaction (in the case of sales taxes) or asset (in the case of capital taxes). This double(2) liability is often mitigated by tax treaties between countries.

The term 'double taxation' is additionally used, particularly in the USA, to refer to the fact that corporate profits are taxed & the shareholders of the corporation are (usually) subject to personal taxation when they receive dividends /or distributions of those profits. This use of the term 'double taxation' is politically freighted since it selectively concatenates, out of all describable sequences of taxation, 2 particular taxes on 2 particular transactions.

Get help Accounting and Financial Accounting with Expertsmind.com

No comments:

Post a Comment