kaksoisverotuksen

Kaksoisverotus refers to the situation where the same income or asset is taxed twice by two different tax jurisdictions. This can occur in various contexts, such as when an individual earns income in one country and is a resident of another, or when a company operates in multiple countries.

There are generally two main types of international double taxation: juridical double taxation and economic double taxation. Juridical double taxation happens when two or more states impose tax on the same taxpayer in respect of the same subject matter and for the same period. Economic double taxation occurs when the same income is taxed twice but in the hands of different taxpayers, for instance, when a company's profit is taxed at the corporate level and then again when distributed as dividends to shareholders.

To mitigate double taxation, countries often enter into bilateral tax treaties. These treaties aim to prevent or relieve double taxation by allocating taxing rights between the countries and providing mechanisms for relief, such as tax credits or exemptions. In the absence of a treaty, domestic legislation may offer some relief through unilateral measures.

The concept of double taxation is significant in international taxation, impacting individuals, businesses, and cross-border investments. Effective mechanisms to avoid or alleviate it are crucial for promoting international trade and investment.