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  • Credits available to resident companies for direct and underlying tax


    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    An Australian resident company which receives a dividend from a related company is entitled to a credit for the direct foreign tax - for example, withholding tax - on the dividend received.

    This credit will generally be available only if the dividend is included in assessable income. The only exception is where a dividend is received from a related foreign company and is treated as paid out of income previously attributed to the resident company under the accruals tax system. A tax credit can be claimed for both the direct foreign tax and underlying tax on these non-assessable non-exempt dividends.

    Last modified: 05 Dec 2006QC 18000