There will hardly be a person who’ll be willing to pay two-fold tax or simply double tax on same income. That’s the reason many people find it ‘Double Jeopardy’ as they are forced to pay tax twice on same income, assets, and transactions. For instance, companies pay ‘corporate tax’ at certain percent of their yield and they pay tax on same income for second time while distributing dividend among shareholders.

Over the time double taxation has drawn significant attention around the world. Consequently, many such reforms and efforts on domestic and international levels have been plowed to alleviate two-fold taxation live out. Exclusion of partnership firms from paying taxes as legal entity, as individual partners are likely to pay income tax on income they receive from same firm, is coupled with those reforms.

Above all, double taxation, rather retribution is business as usual for multi-national companies. It’s because their profits, assets, business transactions pertain to overlapping taxing jurisdictions. No doubt this is a widely argued matter since couple of decades. As an upshot, several nations have crossed the doorsill with two-pronged double taxation agreements signed mutually. And many of such countries now let taxpayers to have the benefit of ‘foreign tax credit’. At the same time, availing tax treaties (that US has with more than 42 countries), is far and wide way that many non-residents or residents residing out of United States for extended time, bring into play to avoid chunk of their incomes getting taxed twice.

Being one of the former advocates of worldwide taxation, United States tax incomes of its residents, regardless of from where such earnings are being sourced. Citizen or green card holder of US is duty-bound to pay to IRS on dividends, capital gains, earnings from stock/bonds/securities, real estate gains or rent earned, royalties or any other income earned abroad. Laying down arms in terms of giving up ‘tax-domicile’ is by and large followed technique to double taxation.