Double Taxing A tax law that causes the same earnings to be subjected to taxation twice. A company's income is taxed initially and then the shareholders and investors are taxed on the distributions they receive from the company. Investopedia Says: In some countries, dividends are double taxed. Related Terms: Capital Gain Dividend Received Deduction - DRD Double Taxation Income Tax Marginal Tax Rate Regulated Investment Company - RIC Tax Shelter Tax Treaty |