# Double Taxation

*Taxes — Finicade finance glossary*

Double taxation is the same income being taxed twice — classically corporate profit taxed at the company, then again as a dividend in the shareholder's hands. Systems soften it with lower dividend rates, imputation credits, or pass-through structures. The cross-border version, the same income taxed by two countries, is what tax treaties and foreign tax credits exist to prevent.

**Also known as:** economic double taxation, juridical double taxation

**Related terms:** [Corporate Tax Rate](https://finicade.com/glossary/corporate-tax-rate), [Dividend](https://finicade.com/glossary/dividend), [Pass-Through Entity](https://finicade.com/glossary/pass-through-entity), [Tax Treaty](https://finicade.com/glossary/tax-treaty), [Qualified Dividend](https://finicade.com/glossary/qualified-dividend)

Source: https://finicade.com/glossary/double-taxation