Foreign Tax Credit
Income tax systems that impose tax on residents on their worldwide income tend to grant a foreign tax credit for foreign income taxes paid on the same income. The credit often is limited based on the amount of foreign income. The credit may be granted under domestic law and/or tax treaty. The credit is generally granted to individuals and entities, and is generally nonrefundable. See Foreign tax credit for more comprehensive information on this complex subject.
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Famous quotes containing the words foreign, tax and/or credit:
“I have been told lately that Fuseli was travelling by coach and a gentleman opposite him said: “I understand, Mr. Fuseli, that you are a painter; it may interest you to know that I have a daughter who paints on velvet.”
Fuseli rose instantly and said in a strong foreign accent, “Let me get out.””
—Samuel Butler (1835–1902)
“I have no doubt that it was a principle they fought for, as much as our ancestors, and not to avoid a three-penny tax on their tea; and the results of this battle will be as important and memorable to those whom it concerns as those of the battle of Bunker Hill, at least.”
—Henry David Thoreau (1817–1862)
“Laws remain in credit not because they are just, but because they are laws. That is the mystic foundation of their authority; they have no other.”
—Michel de Montaigne (1533–1592)