Foreign tax credit

Home country credit against domestic income tax for foreign taxes paid on foreign derived earnings. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • foreign tax credit — or deduction A U.S. citizen or resident who incurs or pays income taxes to a foreign country on income subject to U.S. tax may be able to claim some of these taxes as a deduction or a credit against the U.S. income tax. I.R.C. No.No. 27 and 901… …   Black's law dictionary

  • Foreign tax credit — A foreign tax credit is used to reduce or eliminate double taxation when the same income is taxed in multiple countries. In the United States ( US ) the Internal Revenue Service ( IRS ) grants a foreign tax credit to a taxpayer if the US taxpayer …   Wikipedia

  • Foreign Tax Credit — A non refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign …   Investment dictionary

  • foreign tax credit — A credit against income tax designed to ease the burden of double taxation by permitting a dollar for dollar credit against the United States tax for the tax paid to a foreign country. IRC § 901(a) …   Ballentine's law dictionary

  • foreign tax credit — Home country credit against domestic income tax. Received in return for foreign taxes paid on foreign derived earnings. Bloomberg Financial Dictionary …   Financial and business terms

  • foreign tax credit — Fin a tax advantage for taxes that are paid to or in another country …   The ultimate business dictionary

  • foreign tax credit or deduction — A U.S. citizen or resident who incurs or pays income taxes to a foreign country on income subject to U.S. tax may be able to claim some of these taxes as a deduction or a credit against the U.S. income tax. I.R.C. No.No. 27 and 901 905 + foreign… …   Black's law dictionary

  • foreign tax deduction — foreign tax credit or deduction A U.S. citizen or resident who incurs or pays income taxes to a foreign country on income subject to U.S. tax may be able to claim some of these taxes as a deduction or a credit against the U.S. income tax. I.R.C.… …   Black's law dictionary

  • Foreign Tax Deduction — One of the itemized deductions that may be taken for taxes paid to a foreign government, which typically are classified as a tax withholding. The foreign tax deduction is usually taken in lieu of the foreign tax credit, if the deduction is more… …   Investment dictionary

  • tax credit — An amount subtracted from an individual s or entity s tax liability to arrive at the total tax liability. A tax credit reduces the taxpayer s liability dollar for dollar, compared to a deduction which reduces taxable income upon which the tax… …   Black's law dictionary

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