International
6. Foreign Income Tax Offset
Firm / Chambers:
Last updated: 31 Jul 2015
- The foreign income tax offset (FITO) rules give protection against double taxation on foreign income.
- The offset will only be available if you paid foreign income tax on foreign income that is also taxable in Australia.
- The offset cap is the amount of Australian income tax that would have been payable if the foreign income was taxed in Australia.
- Foreign tax paid on capital gains derived abroad will be offset but not the foreign capital losses. This is because no foreign income tax would be paid on the capital loss. This means that foreign capital losses cannot be offset against the capital gains of the Australian resident.
- Tax offsets are not refundable. Therefore if the foreign tax paid is greater than the Australian tax on that income the excess will be lost.
View more Information on Tax & Superannuation