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