Definitions from the Web
Double Taxation
Description
Double taxation refers to the imposition of tax on the same income or assets by two or more taxing authorities. It commonly occurs when an individual or a business entity is subject to taxation in both their home country and a foreign country, leading to potential economic burden or unfairness. This phenomenon can happen at various levels, including corporate profits, dividends, capital gains, and international trade.
Sample Sentences
- The multinational corporation faced double taxation as it generated profits in multiple countries.
- Many countries have double taxation treaties in place to mitigate the impact on individuals and businesses.
- Investors need to be aware of potential double taxation when considering international investments.
- Double taxation can discourage foreign investments and stifle economic growth.
- Understanding the implications of double taxation is crucial for effective financial planning.
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