| Taxation of the same earnings at two levels. For example, when a company makes a profit, its profits are taxed, then any dividends which it pays to its shareholders out of its post-tax profits are taxed in the hands of the shareholders. Thus the profits are subject to double taxation. The term can also refer to the situation in which money is taxed in two different countries. Some countries have signed double taxation agreements so that if income has been taxed in one country it will not be taxed again on repatriation.
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