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DOUBLE TAXATION - Coggle Diagram
DOUBLE TAXATION
Types of Credit
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- credit given only once, thus if any credit has been given particular YA, no further credit will be given for same foreign tax in any other YA
- deduction credit must be made, in writing, latest within 2y after end of relevant YA
Issue
- a person who is a tax resident of one country derives Y from another country and both countries impose tax on same Y
- provides solution through application of credit system where country of residence grant tax credit in respect of tax any foreign tax suffered in tax country of same Y