Double taxation is the levying of taxes by two or more laws on the same income (in the case of income tax), on wealth (in the case of capital taxes) or on financial transactions (in the case of turnover taxes). Double taxation can also take place within a single country. This usually happens when sub-national jurisdictions have tax powers and jurisdictions have competing rights. In the United States, a person can legally have only one residence. However, when a person dies, different States may claim that the person was domiciled in that State. Intangible personal property can then be imposed by any claiming State. In the absence of specific laws prohibiting multiple taxation and as long as the sum of taxes does not exceed 100% of the value of personal physical assets, the courts will allow such multiple taxation. [Citation required] Another common situation of double taxation is that a person who is not resident in the United Kingdom but who has income from the United Kingdom and who remains fiscally resident in his country of origin. You cannot benefit from this facility if the UK Double Taxation Convention requires you to recover taxes in the country where your income comes from. The term « double taxation » may also refer to the double taxation of income or activity.
For example, corporate profits may be taxed first if they are earned by the entity (corporation tax) and, in turn, when the profits are distributed to shareholders in the form of dividends or other distributions (dividend tax). In both situations, there is a combined system that makes the difference in active and passive income.  You usually get relief even if there is no agreement, unless the foreign tax is not in line with UK income tax or capital gains tax. In recent years,[when?] the evolution of foreign investment by Chinese enterprises has grown rapidly and has become quite influential….