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  • Working out the amount of assessable foreign income for creditable foreign taxes


    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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    Your assessable foreign income for each class is 'grossed up' by the amount of foreign tax credit you can claim for that class of income. A company must also include an amount equal to any credit allowable for foreign underlying tax.

    Example 9: Creditable foreign taxes

    A company resident in New Zealand pays a dividend of $100 to an Australian resident individual. As New Zealand deducts $15 withholding tax, the taxpayer actually received $85. The taxpayer's assessable foreign income for that dividend will be $100 - that is, the amount of the dividend before the payment of withholding tax.

    End of example
    Last modified: 05 Dec 2006QC 18000