Work out double taxation relief instantly with clear inputs, formula shown and shareable results.
Relief for tax paid abroad is normally limited to the domestic tax on the same income, so a higher foreign rate leaves part of the foreign tax unrelieved. That excess is generally lost rather than refunded.
Ordinary credit method
Relief = min(foreign tax paid, domestic tax on that income)
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Because the domestic authority will not refund another country's tax. It only gives up its own claim on that income.
Where the foreign rate is lower, an exemption method leaves the taxpayer better off — the treaty decides which applies.