Work out foreign income tax credit instantly with clear inputs, formula shown and shareable results.
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.
Credit limit
Limit = domestic tax × foreign income / worldwide income; credit = min(foreign tax, limit)
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.
Some regimes allow carry-forward or carry-back; many simply deny it, so the excess is a real cost.
It varies. Some jurisdictions require a separate basket per country or per income type, which reduces flexibility.