الضريبة المزدوجة هي نوع من الضرائب المفروضة على نفس الدخل أو الأرباح في أكثر من ولاية قضائية. يحدث هذا عادةً عندما تقوم شركة أو فرد بالكسب في دولة معينة، ولكن يتم فرض ضريبة على هذا الدخل من قبل دولتين أو أكثر. يمكن أن يحدث هذا في سياقات مختلفة، مثل الأفراد الذين يعيشون في بلد ويعملون في آخر، أو الشركات التي تدير عمليات في عدة دول. يتم التعامل مع الضريبة المزدوجة من خلال اتفاقيات بين الدول لتجنب فرض ضريبة مكررة على نفس الدخل، مما يساعد على تعزيز الاستثمار والتجارة الدولية.

Definition of Double Taxation

How Does Double Taxation Work?

Corporations vs. Other Businesses

International Double Taxation

Can I Avoid Double Taxation?

Frequently Asked Questions (FAQs)

Definition of Double Taxation: Double taxation refers to the taxation of income twice on the same income. It usually applies to corporations and their shareholders. Tax is imposed on the company on its profits or earnings, and then again on shareholders on the dividends and capital gains they receive from those profits.

How Does Double Taxation Work: Double taxation refers to how companies and their shareholders are taxed twice on profits. Shareholders in companies, including individual investors and corporate executives, pay taxes on the profits they receive – which represent a share of the company’s profits – after the company has already paid tax on its earnings or profits. Double taxation can also refer to the taxation of a company or individual by two different countries on the same income.

Corporations vs. Other Businesses: C corporations are the only type of businesses that deal with double taxation. Other types of businesses do not usually face this issue. S corporations are taxed like partnerships. Their profits are passed through to their owners, who are taxed on them in their individual income tax returns. S corporations, partnerships, and sole proprietorships are also considered “pass-through” entities. Business income is passed through to the owners, who pay taxes on it in their individual income tax returns. Owners of these businesses must pay taxes directly, unlike corporations that pay taxes separately from their owners.

International Double Taxation: Companies operating internationally may face double taxation if they are taxed on their profits in the country where they were earned and then taxed again when the money is brought back to the home country. However, taxes can often be avoided. Countries around the world have entered into numerous treaties that agree to limit corporate taxation so that companies are not taxed twice.

Can I Avoid Double Taxation?: There is no tax avoidance if you are receiving dividends, but buying stocks and holding them long enough to meet the qualified dividend rules can grant you a lower tax rate on that income in many cases. You will still pay tax on that income after the company has done so, but the rate will be more favorable.

Frequently Asked Questions (FAQs):

Is double taxation fair?

Can I be taxed in two states?

Sources:

– Cornell Law School Legal Information Institute

– IRS

– Fidelity

– Tax Policy Center

– Wolters Kluwer

– Tax Foundation

– H&R Block

Source: https://www.thebalancemoney.com/what-is-double-taxation-398210