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LSDefine

Simple English definitions for legal terms

double taxation

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A quick definition of double taxation:

Double taxation is when the same money or property gets taxed twice. This can happen when a company pays taxes on its profits and then shareholders also pay taxes on the dividends they receive from those profits. It can also happen when someone lives in one country but earns money in another country and both countries want to tax that person's income. Some countries have agreements to prevent this from happening to foreign companies or individuals.

A more thorough explanation:

Double taxation is when the same income, assets, or financial transaction is taxed twice at different times. This can happen in two ways:

  • Economic double taxation: This happens when a company's earnings are taxed, and then the shareholders' dividends are also taxed. This means that the same money is being taxed twice.
  • Legal double taxation: This happens when a person is considered a tax resident in two different countries. Both countries tax the person's income, even though it's the same income. This means that the person is being taxed twice.

For example, let's say a company earns $100,000 in profits. The government taxes the company's profits at a rate of 20%, so the company pays $20,000 in taxes. Then, the company distributes $50,000 in dividends to its shareholders. The government taxes the dividends at a rate of 15%, so the shareholders pay $7,500 in taxes. This means that the same $50,000 is being taxed twice.

Another example of double taxation is when a person lives in one country but works in another. Both countries may consider the person a tax resident and tax their income. This means that the person is being taxed twice on the same income.

To prevent double taxation, many countries have signed treaties with each other. These treaties determine which country the person or company must pay taxes to and create mechanisms for the elimination of double taxation.

double jeopardy | double wills

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GnomeoAndJuliet36
15:24
yea u have u should take a pair of scissors and snip each individual ligament in ur knee
dasfi0990ut1
15:24
@U-Hawaii-Jason-Momoa-Law: What happened to my friend? Hey banned :(
therealjaysontatum
15:24
you must be the real joel embiid
GnomeoAndJuliet36
15:24
holy
GnomeoAndJuliet36
15:24
how did u know
BatmanBeyond
15:32
No MVP or Finals MVP
BatmanBeyond
15:32
At least he avoided the Duke Bust label
therealjaysontatum
15:37
got a ring tho
starfishies
15:39
i have decision rendered on bc portal ;-;
therealjaysontatum
15:39
we talking ball now
starfishies
15:39
he really got that ring though
GnomeoAndJuliet36
15:50
still doggy doo
GnomeoAndJuliet36
15:51
put him on the hornets theyre still one of the worst teams in the leagues and the celtics still making it to the finals
RoaldDahl
15:55
I have decision rendered too 0.o
therealjaysontatum
15:55
hes different this year
therealjaysontatum
15:55
im different this year*
RoaldDahl
15:56
@starfishies: when will they render these decisions
GnomeoAndJuliet36
15:59
im just playing jayson its me al horford
therealjaysontatum
16:15
goat
@dasfi0990ut1: You shouldn't be concerned about racists posting in this chat.
RoaldDahl Starfishes where do you see that? Under the status section
Mine looks the same as always
RoaldDahl
16:50
yeah on bc portal
RoaldDahl
16:51
Status:1st Time Decision Rendered
ugh mine still says complete. I applied towards the end of november did u apply before then
I applied in september and got rejected! Hope this helps
poop
RoaldDahl
16:55
early NOV
fart
starfishies
17:14
end of October
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