Double taxation

Double taxation is the imposition of two or more taxes on the same income, asset or financial transaction. Many nations make bilateral Double taxation agreements with each other. This requires that tax be paid in the country of residence and be exempt in the country in which it arises. In the European Union, member states have concluded a multilateral agreement on information exchange. India has comprehensive Double Taxation Avoidance Agreements with 79 countries. U.S. requires its citizens to file tax returns reporting their earnings. Double taxation can also happen within a single country. In the United States a person may legally have only a single domicile.