Taxation of the same earnings at two levels. One common example is taxation...
Where the same income is liable to be taxed in both the UK and another country, relief may be available under the specific terms of a double tax agreement between the UK and that other country. This ensures the income is only taxed once.
One of the main disadvantages of corporate ownership of income property is that the profits are subject to double taxation. As a legal entity, a corporation must file an income tax return and pay tax on its profits. The portion of the remaining profits distributed to shareholders as dividends is taxed again as part of the shareholders' individual incomes.
Where the same income is liable to be taxed in both the UK and another country, the effect is that tax is paid twice. To avoid this, relief may be available under the specific terms of a double tax agreement (convention) between the UK and that other country.
Taxation of profits at both the corporate level and the stockholder level. The corporation is taxed on its income and stockholders are taxed on dividends.
Taxation of earnings at the corporate level, and then again at the shareholder dividend level.
A form of taxation under which any dollar of income is subject to more than one level of tax. The classic example is income that is taxed at the corporate level and then taxed again as dividend income when received by the shareholder. With capital gains taxes and estate taxes, it is possible for a single dollar of income to be taxed four times.
A situation in a “C” corporation in which the owners of the corporation are taxed twice on the same income: first, in the form of a corporate income tax on the corporation's net income, and second, in the form of a personal income tax when the corporation's net income after taxes is paid to the shareholders as a dividend. "S" corporations and LLC's are “pass-through” tax entities and generally are not subject to double taxation. EIN (Employer identification number) – see Federal tax identification number Federal tax identification number (Employer identification number, EIN, tax number) A federal tax identification number is a unique number assigned by the IRS for tax purposes. Analogous to a social security number, but for a business. As a separate legal and taxable entity, every corporation must have its own EIN assigned by the IRS.
Refers to corporate income which is subject to both corporate taxes and individual taxes. Frequently, it is viewed as the case whereby the company's income is taxed and the distribution of that income in the form of a dividend paid to the shareholder as taxed again.
Corporations are treated as a separate legal taxable entity for income tax purposes. Therefore, corporations pay tax on their earnings. If corporate earnings are distributed to shareholders in the form of dividends, the corporation does not receive the reasonable business expense deduction, and dividend income is taxed as regular income to the shareholders. Thus, to the extent that earnings are distributed to shareholders as dividends, there is a double tax on earnings at the corporate and shareholder level. S corporations and LLCs are pass-through entities that are not subject to the double tax. - Engagement Letter - Written communication between an accountant and a client with respect to a professional engagement, outlining the scope of the accountantâ€™s responsibilities and arrangements agreed upon.
The federal government taxes corporate profits once as corporate income; any part of the remaining profits distributed as dividends to stockholders may be taxed again as income to the recipient.
Owners of C Corporations pay income taxes on the business's net income as well as on dividends received from the corporation.
Corporate earnings taxed at both the corporate level and again as a stockholder dividend.
Corporations are treated as a separate legal taxable entity for income tax purposes. Therefore, corporations pay tax on their earnings. If corporate earnings are distributed to shareholders in the form of dividends, the corporation does not receive the reasonable business expense deduction, and dividend income is taxed as regular income to the shareholders. Thus, to the extent that earnings are distributed to shareholders as dividends, there is a double tax on earnings at the corporate and shareholder level. S corporations and LLCs are pass-through entities which are not subject to the double tax. Equity The ownership of a shareholder in a corporation. Fictitous Name See "Doing Business As".
A tax concept that requires the same earnings to be taxed twice, normally only applicable to C corporations. C corporations are required to file and pay tax on any income or gains, so the tax is first paid at the corporate level. Then, if the corporation distributes those gains or income to its shareholders, the shareholders must report the distribution as income and pay tax again. Thus, the process is referred to as double taxation.
When a corporation must pay taxes on its earnings and individual shareholders must also pay taxes on any dividends that are distributed.
This is what may happen when a person domiciled in country A works in country B. Tax will be deducted in B, and the same income will also feature for tax liability in country A. Most countries have tax treaties, so that provided the Inland Revenue is informed of the tax already paid on income it will not be deducted again.
Corporations pay taxes on revenue before paying dividends. The dividends, in the hands of the stockholder, are taxed again as ordinary income. Hence "double" taxation.
The assessment of the same tax twice on an item; The notion or act of double taxation has not been definitively proven to be unconstitutional
Refers to the structure of taxation under the Internal Revenue Code which subjects income earned by a C corporation to an income tax at the corporate level and a second tax at the shareholder level if the previously taxed income is distributed to the shareholders as dividends. Note that S corporations and Limited Liability Companies are not subject to double taxation.
Business profits and income of sole proprietors, partnerships, and S corporations receive taxation only at the individual taxpayer level. However, C corporations experience taxation at the corporate level and the individual taxpayers pay taxes on dividends.
Double taxation is a situation in which two or more taxes may need to be paid for the same asset, financial transaction and/or income and arises due to overlap between different countries' tax laws and jurisdictions. The liability is often mitigated by "tax treaties" between countries.