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  • Claiming a foreign income tax offset

    Work out if you're eligible to claim an offset for tax you pay on income from another country.

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    Eligibility for the foreign income tax offset

    You can claim an Australian foreign income tax offset if you’ve paid foreign tax in another country. The foreign income tax offset provides relief from double taxation. You pay tax on your employment income or capital gains you make.

    To be able to claim a foreign income tax offset, you must:

    • have actually paid an amount of foreign income tax on your Foreign income
    • include the income or capital gain you paid foreign income tax on in your assessable income for Australian income tax purposes.

    Calculate the foreign income tax offset

    Differences between the Australian and foreign tax systems may mean you pay foreign income tax in a different income year. You can only claim the offset after you pay the foreign tax.

    Before you calculate your net income, you must Convert all foreign income, deductions and tax amounts you pay to Australian dollars.

    Use the Guide to foreign income tax offset rules to work out which foreign taxes count towards the offset.

    Last modified: 08 Jun 2022QC 33244