Double taxation: causes and ways of elimination

Date:

2018-03-18 12:50:42

Views:

540

Rating:

1Like 0Dislike

Share:

Table of contents:

International double taxation-taxation of one person against the same database net not less than two States for the same period. This phenomenon rather negatively affects the development of foreign trade relations, contributes to the difficulty of movement of capital and hinders the development of economic integration processes. In addition, some entities, seeking to avoid the additional tax burden, they do it so successfully that develop special schemes to minimize tax obligations.

Double taxation should not be confused with the accumulation of the tax, which is the imposition of multiple taxes on one and the same source (re-imposition). This can be the case when the object had previously been taxed in favor of the state Treasury.

Also consider the concept must be distinguished from economic double taxation, which occurs during the taxable profit as a self-payer, and the taxation parts of it with shareholders in form of dividends. It is the economic double taxation can contribute to minimization of tax obligations by transferring distributable profits as dividends to foreign shareholders of the company (in accordance with the current law – tax withholding made as to the location of the source of income, and the whereabouts of the resident).

The Main reasons for such taxation are conflicts in the existing tax legislation of the countries-participants of legal relations between economic entities on the commodity, income and capital. These conflicts arise from the fiscal direction of the state in which the power to fully and independently involved in establishing the object of taxation, circle of taxpayers, as well as the size and methods of levying of tax deductions. The main criteria in defining the boundaries of the taxing jurisdiction are:

Recommended

Insurance for pregnant women when traveling abroad: features, views, and reviews

Insurance for pregnant women when traveling abroad: features, views, and reviews

Currently, in our country there is a huge number of insurance companies that are willing to provide the necessary services at any time. Insurance expectant mothers – is a separate activity that SK are doing very reluctantly. The fact is that pr...

Construction company

Construction company "Rosstroyinvest": feedback from real estate investors. LCD "Old fortress". LCD "Golden domes"

One of the most promising participants in the Russian real estate market, particularly in the joint construction, is the "Rosstroyinvest". Reviews of investors are saying about the leading role of the construction company year of Foundation, in 2002,...

The conditions for obtaining credit in modern banking institutions

The conditions for obtaining credit in modern banking institutions

Any aspiring entrepreneur is faced with the problem of insufficient funding of their own business. Currently, this problem can be solved by knowing the terms of the loan and taking the necessary amount from the Bank. This method is best for solving p...

- the residency, meaning the taxation of all income of a resident regardless of the location of the sources (this term can be found also under the name “unlimited tax liability"). Income of non-residents are taxable only if they are derived from sources of that country;

- territoriality, which provides for taxation of all income earned in this country, and from all payers, regardless of their domicile.

The Elimination of double taxation is implemented in the countries in different ways. For example, some States conduct their economic relations with payers on the basis of residency, other – using the principle of territoriality.

Often, international double taxation is due to the peculiarities of definition of the subject. Especially when as a taxpayer it is taken simultaneously in several countries. This is possible when action in one state's rules of residency for a period of time when the business entity resides in the territory of this country, and in the other – taxation is made upon the finding of permanent residence in its territory.

The elimination of such negative index of how double taxation should be interested in both sides. Thus, the taxpayer in the taxation and taxes in different countries of the same object increases significantly the tax burden. The state's interest should be manifested in creating a favorable tax climate, attracting foreign investments and enhancing competitiveness.


Article in other languages:

AR: https://tostpost.com/ar/cars/7586-what-is-the-exam-in-the-traffic-police.html

BE: https://tostpost.com/be/a-tamab-l/13550-shto-zh-uya-lyae-saboy-ekzamen-u-d-bdr.html

DE: https://tostpost.com/de/autos/13553-was-ist-eine-pr-fung-in-der-verkehrspolizei.html

ES: https://tostpost.com/es/coches/13560-que-es-un-examen-en-el-gbdd.html

HI: https://tostpost.com/hi/cars/7592-what-is-the-exam-in-the-traffic-police.html

JA: https://tostpost.com/ja/cars/7588-what-is-the-exam-in-the-traffic-police.html

KK: https://tostpost.com/kk/avtomobil-der/13553-b-l-b-ld-red-emtihan-gibdd.html

PL: https://tostpost.com/pl/samochody/13540-co-to-jest-egzamin-do-policji.html

PT: https://tostpost.com/pt/carros/13534-o-que-um-exame-de-pol-cia-de-tr-nsito.html

TR: https://tostpost.com/tr/arabalar/13556-nedir-bu-s-nav-traf-k-polisi.html

UK: https://tostpost.com/uk/avtomob-l/13550-scho-zh-yavlya-soboyu-spit-v-gibdd.html

ZH: https://tostpost.com/zh/cars/8252-what-is-the-exam-in-the-traffic-police.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

Comments (0)

This article has no comment, be the first!

Add comment

Related News

Can I take credit for the copies of your passport, INN, SNILS?

Can I take credit for the copies of your passport, INN, SNILS?

Loans is that lately it's very necessary to many citizens. However, this process is accompanied by collecting a rather large list of different securities. Some question: is it possible to take credit for the copy of your passport ...

Calculation of compensation for delayed salaries. Compensation

Calculation of compensation for delayed salaries. Compensation

Every employee is entitled to receive a salary, and the employer is required to pay it. She may be charged. If the head of the company can not pay wages to employees on time, they can claim compensation. Such a possibility is prov...

Social mortgage in Kazan. Social mortgage for young families

Social mortgage in Kazan. Social mortgage for young families

mortgage   loans under which the customer acquires property and undertakes within the specified period to repay the debt. As security for performance of obligations the property is transferred in pledge to the Bank. The buyer...

Profit before tax: economic sense and calculation methods.

Profit before tax: economic sense and calculation methods.

the Economic activity of any enterprise should be assessed in order to obtain a precise idea of how effectively the management of the company, what risks are there in front of her today and what are the prospects of its further de...

Where better to make CTP? Insurance via the Internet

Where better to make CTP? Insurance via the Internet

the conclusion of the insurance contract, is the responsibility of all car owners. The rule established by the legislation on the basis of the analysis of the accident. Not everyone knows where to draw the road. Offer their servic...

IBAN - what is it? What does the IBAN number of the Bank?

IBAN - what is it? What does the IBAN number of the Bank?

If you for once in my life had to make transfers of funds to the European countries, the concept of “IBAN code” you know. To call it you need the sender for processing the transfer. To know the IBAN number, enough to c...