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Foreign Income Tax Credit Calculator

Work out foreign income tax credit instantly with clear inputs, formula shown and shareable results.

About Foreign Income Tax Credit Calculator

The credit is capped at the share of domestic tax attributable to foreign income, computed by apportioning total tax on the ratio of foreign to worldwide income. That proportional limit is what stops foreign tax sheltering domestic income.

Formula

Credit limit

Limit = domestic tax × foreign income / worldwide income; credit = min(foreign tax, limit)

Worked example

With the default values below, Foreign Income Tax Credit Calculator returns Foreign Tax Credit Allowed of $220,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Foreign Source Incomeminimum 0
1,200,000
Foreign Tax Paidminimum 0
220,000
Total Worldwide Incomeminimum 0
4,000,000
Total Domestic Taxminimum 0
1,100,000

Results

Foreign Tax Credit Allowed
$220,000.00
Credit Limit On Proportional Income
$330,000.00
Credit In Excess Of The Limit
$0.00
Domestic Tax After Credit
$880,000.00

Step by step

  1. 1Values used
  2. 2Credit limit
  3. 3Foreign Tax Credit Allowed= 220,000.00
  4. 4Credit Limit On Proportional Income= 330,000.00
  5. 5Credit In Excess Of The Limit= 0.00
  6. 6Domestic Tax After Credit= 880,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Can excess credit be carried forward?

Some regimes allow carry-forward or carry-back; many simply deny it, so the excess is a real cost.

Is the limit computed per country?

It varies. Some jurisdictions require a separate basket per country or per income type, which reduces flexibility.

Related Calculators

Foreign Income Tax Credit Calculator | Calcrivo