When a foreign income tax offset applies

To be entitled to a foreign income tax offset:

• the foreign tax must be foreign income tax
• you must have actually paid, or be deemed to have paid, the foreign income tax
• the income or gain on which you paid foreign income tax must be included in your assessable income in Australia.

The offset is available in the income year in which the income or gain (on which the foreign income tax has been paid) forms part of your assessable income in Australia.