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Business
Double Taxation
When the same income is taxed in two different countries, usually for businesses operating internationally.
Double taxation agreements between countries prevent this problem. Relief can be given by exemption or tax credit. Proper planning avoids double taxation and keeps international business viable.
It's the taxman in two countries both wanting their share of the same money.
Real world: A UK company earns profit in Germany. Germany taxes it at source, then the UK also wants to tax the same profit when it is brought back. Double tax treaties usually give relief so the company doesn't pay twice.
💡 Double taxation treaties exist so businesses aren't punished for operating across borders.