double taxation investment & finance definition
A
situation that occurs when corporations issue dividends, which they cannot
deduct from their income. Shareholders receiving the dividends have to pay tax,
resulting in so-called double-taxation of dividends.
See double taxation in Wall Street Words
Taxation of the same income twice by the same taxing authority. It is generally used to refer to the taxation of dividends that are taxed once at the corporate level (as income before dividends are declared) and again at the personal level (when the dividends are received).
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