Double Taxation | Definition | Taxation In Corporation & Personal levels

In this video,on double taxation we will study definition and how taxation principle is applied at corporate and personal levels.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐃𝐨𝐮𝐛𝐥𝐞 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧?
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When we pay income tax twice on the same source of earnings, asset or monetary transaction, this concept of taxation is called double taxation.

𝐃𝐨𝐮𝐛𝐥𝐞 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐢𝐧 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧𝐬 (𝐒 𝐂𝐨𝐫𝐩 𝐚𝐧𝐝 𝐂 𝐂𝐨𝐫𝐩)
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#1 - The taxation principle impacts C corporations where earnings are taxed at corporate and personal levels.

#2 - Before the revenues are allocated to the stockholders corporations must pay income tax at corporate rate in double taxation.

#3 - Double Taxation is widely accepted as a negative component of the taxation system and in possible situations, the tax authorities try to avoid it.

𝐃𝐨𝐮𝐛𝐥𝐞 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧 𝐀𝐯𝐨𝐢𝐝𝐚𝐧𝐜𝐞
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#1 - For small Double taxation in corporations, main stockholders are employees of company and thus income are distributed among the shareholders as wages and fringe benefits for how to avoid double taxation.

#2 - Big Firm whose stockholders are not their employees and the income or corporate profits cannot be distributed as wage or fringe benefits are often able to avoid double taxation.

If you want to know more about 𝐃𝐨𝐮𝐛𝐥𝐞 𝐓𝐚𝐱𝐚𝐭𝐢𝐨𝐧 you can visit the 𝐥𝐢𝐧𝐤 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐝 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/double-taxation/

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Видео Double Taxation | Definition | Taxation In Corporation & Personal levels канала WallStreetMojo