Double taxation occurs when the same income is taxed by two different jurisdictions. This often happens when individuals or businesses earn income in one country but are also subject to taxes in their home country. For example, a U.S. citizen working in France may have to pay taxes on their income in both countries. To alleviate the burden of double taxation, many countries enter into treaties that allow taxpayers to receive credits or exemptions. These agreements help ensure that individuals and businesses are not unfairly taxed on the same income, promoting international trade and investment.