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

Last updated 4 December 2006

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.