Income Tax Assessment Act 1997
CHAPTER 4
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INTERNATIONAL ASPECTS OF INCOME TAX
PART 4-5
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GENERAL
Division 770
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Foreign income tax offsets
Subdivision 770-A
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Entitlement rules for foreign income tax offsets
Basic entitlement rule for foreign income tax offset
SECTION 770-15 Meaning of foreign income tax, credit absorption tax and unitary tax 770-15(1)
Foreign income tax means tax that:
(a) is imposed by a law other than an *Australian law; and
(b) is:
770-15(2)
Credit absorption tax means a tax imposed by a law of a foreign country, or of any part of, or place in, a foreign country to the extent that the tax would not have been payable if the entity concerned or another entity had not been entitled to an offset in respect of the tax under this Division.
770-15(3)
Unitary tax means a tax imposed by a law of a foreign country, or of any part of, or place in, a foreign country, being a law which, for the purposes of taxing income, profits or gains of a company derived from sources within that country, takes into account, or is entitled to take into account, income, losses, outgoings or assets of the company (or of a company that for the purposes of that law is treated as being associated with the company) derived, incurred or situated outside that country, but does not include tax imposed by that law if that law only takes those matters into account:
(a) if such an associated company is a resident of the foreign country for the purposes of the law of the foreign country; or
(b) for the purposes of granting any form of relief in relation to tax imposed on dividends received by one company from another company.
View history note
Hide history noteSECTION 770-15 Meaning of foreign income tax, credit absorption tax and unitary tax 770-15(1)
Foreign income tax means tax that:
(a) is imposed by a law other than an *Australian law; and
(b) is:
(i) tax on income; or
(ii) tax on profits or gains, whether of an income or capital nature; or
(iii) any other tax, being a tax that is subject to an agreement having the force of law under the International Tax Agreements Act 1953 .
Note:
Foreign income tax includes only that which has been correctly imposed in accordance with the relevant foreign law or, where the foreign jurisdiction has a tax treaty with Australia (having the force of law under the International Tax Agreements Act 1953 ), has been correctly imposed in accordance with that tax treaty.
770-15(2)
Credit absorption tax means a tax imposed by a law of a foreign country, or of any part of, or place in, a foreign country to the extent that the tax would not have been payable if the entity concerned or another entity had not been entitled to an offset in respect of the tax under this Division.
770-15(3)
Unitary tax means a tax imposed by a law of a foreign country, or of any part of, or place in, a foreign country, being a law which, for the purposes of taxing income, profits or gains of a company derived from sources within that country, takes into account, or is entitled to take into account, income, losses, outgoings or assets of the company (or of a company that for the purposes of that law is treated as being associated with the company) derived, incurred or situated outside that country, but does not include tax imposed by that law if that law only takes those matters into account:
(a) if such an associated company is a resident of the foreign country for the purposes of the law of the foreign country; or
(b) for the purposes of granting any form of relief in relation to tax imposed on dividends received by one company from another company.
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