• Claiming a foreign income tax offset

    If you’ve paid foreign tax on employment income or capital gains in another country, you may be entitled to an Australian foreign income tax offset.

    To be entitled to an offset:

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

    Differences between the Australian and foreign tax systems may mean you pay foreign income tax in a different income year from the year that the income or gain is included in your assessable income for Australian income tax purposes. But you can claim the offset only after you’ve paid the foreign tax.

    See also:

    Last modified: 30 May 2015QC 33244