Page 65 - F1 Integrated Workbook STUDENT 2018

International Taxation

2.1 Double taxation relief

Double taxation relief

Deduction
Exemption Tax credit
The countries Tax paid in one Tax relief is
gained by
agree on certain country may be
types of income allowed as a tax deducting the
which will be credit in another foreign tax from
exempt or country. Relief the foreign
partially exempt is normally income so that
in one country or restricted to the only the ‘net’
amount will be
the other. lower of the two subject to tax.
countries tax.

55