A credit can be allowed for:
- foreign tax which is similar to Australian income tax or capital gains tax
- foreign withholding taxes similar to the Australian withholding taxes on interest, dividends or royalties
- foreign taxes listed in Australia's double taxation agreements.
Note: You are not allowed a credit for penalties, fines or interest.
If you are not sure whether you can apply for a foreign tax credit, write Schedule of additional information-Question 19 on the top of a separate piece of paper and explain your situation. Include:
- your name, address and tax file number
- the precise name of the tax and the country in which it was levied
- the name of the law under which the tax was imposed
- whether the tax was levied by a national, state or local authority and the name of the authority
- a description of the tax and why you had to pay it.
Print X in the Yes box at Taxpayer's declaration question 2a on page 8 of your tax return.
Sign and attach your schedule to page 3 of your tax return.