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  • Credit for notional tax foregone by developing countries


    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Certain double taxation agreements with developing countries provide for 'tax sparing'. Tax sparing preserves taxation incentives which are provided by a treaty partner to promote economic development. If tax sparing applies to a tax incentive, you can claim a credit for tax foregone by a treaty partner under the incentive. The double taxation agreements list the taxes for which tax sparing is provided.

    Last modified: 05 Dec 2006QC 18000