ACCT2331 Chapter Notes - Chapter 34,35,38: Official Development Assistance, Double Taxation, Vale Limited
Document Summary
Preventing double taxation: double taxation of international transactions may deter: [p933] Foreign investment in australia: double taxation may be prevented by: [p935] Deduction method: australia uses a mixture of these methods (credit and exemption method) Foreign income tax offset (div 770 itaa97) [p937] Taxpayers are entitled to a "foreign income tax offset" (fito) when they pay foreign income tax on amounts included in their assessable income. The fito is generally the amount of foreign income tax paid: however, the fito operates subject to an offset limit fito cannot generally exceed the greater of ,000 or the australian tax on the foreign income. Foreign tax < aus tax on foreign income => fito = foreign tax paid. Foreign tax >aus tax on foreign income => fito = lesser of aus tax of foreign tax on foreign income. Foreign service income exemption (s 23ag itaa36) [p939]
