Document ID: chunk:federal_register_of_legislation:C2010C00184:clause:1_1:p3
Version: federal_register_of_legislation:C2010C00184
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/8)
Character Range: 12343–14899

the force of law under the International Tax Agreements Act 1953.

 (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.

 (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.

Subdivision 770‑B—Amount of foreign income tax offset

Guide to Subdivision 770‑B

770‑65  What this Subdivision is about

      The amount of your tax offset is based on the amount of foreign income tax you have paid.
      However, there is a limit on the maximum amount of your offset. The limit is the greater of $1,000 and an amount worked out under this Subdivision. This amount is based on a comparison between your tax liability and the tax liability you would have if certain foreign‑taxed and foreign‑sourced income and related deductions were disregarded.
      You may choose to use the limit of $1,000 and not work out this amount.
      There is an increase in the limit to ensure foreign income tax paid on some amounts that are not taxed always forms part of the offset.

Table of sections

Operative provisions

770‑70 Amount of foreign income tax offset
770‑75 Foreign income tax offset limit
770‑80 Increase in offset limit for tax paid on amounts to which section 23AI or 23AK of the Income Tax Assessment Act 1936 apply

Operative provisions

770‑70  Amount of foreign income tax offset

  The amount of your *tax offset for the year is the sum of the *foreign income tax you paid that counts towards the offset for the year.

Note 1: The amount of foreign income tax you paid may be affected