Tax Glossary Definition
Double Taxation (Domestic and International) – Double taxation occurs when the same income or transaction is taxed twice, either within the same country (domestic double taxation) or across different countries (international double taxation). This typically results from overlapping tax jurisdictions or uncoordinated tax systems, leading to an excessive tax burden on taxpayers.
Example: Domestic: A company’s profit and the dividend paid from that profit are both taxed. International: An Indian resident earning income in the USA may be taxed both in the USA (source country) and in India (residence country).
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