The Majlis approved the double taxation avoidance and tax affairs information exchange agreement between Iran and Yemen.
The two countries signed the agreement in order to boost the bilateral economic cooperation, the Mehr News Agency reported.
Double taxation means taxation of the same income twice by the same taxing authority. It is generally used to refer to the taxation of dividends that are taxed once at the corporate level (as income before dividends are declared) and again at the personal level (when the dividends are received).
One of the most common examples of double taxation occurs when a publicly-traded company pays corporate taxes on its earnings. It then passes on some of those earnings to shareholders as dividends, on which they must pay individual income tax or capital gains tax.