• Part 3 - What credit can you claim for foreign tax?

    Attention

    Warning:

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

    End of attention

    This part explains the general foreign tax credit rules for Australian residents and the rules that apply specifically to Australian companies.

    Summary of part 3

    Section 1

    General credit available to Australian residents

    Section 2

    Credit specific to Australian companies

    The general rule is that:

    • if you are an Australian resident for taxation purposes, you may be entitled to a credit for the foreign tax you have paid, and
    • if you are an Australian company, you may also be entitled to a credit for foreign underlying tax paid by a related company on profits out of which a dividend is paid.
    Last modified: 05 Dec 2006QC 18000