Private ruling: Foreign income tax offset
Date of advice: 12 November 2021
Published: February 2022
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a Foreign Income Tax Offset (FITO)? | A1: Yes. Based on the information provided to the Commissioner you are able to claim a FITO in relation to the Country Y net investment tax paid in the Country Y. In order to qualify for a FITO the tax must be paid in Country Y prior to it being claimed in your Australian tax return.

Relevant facts and circumstances: You are an Australian tax resident. You are a citizen of Country Y. You are a Country Y tax resident for Country Y tax purposes. You sold shares in an Australian resident company. You will also declare a capital gain in Country Y and pay income tax and net investment tax in Country Y in respect of the sale of the shares.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 770