Federal Foreign Business Income Tax Credit
no fixed amount
Tax Credit
Description:
To prevent double taxation, a corporation that pays foreign tax on income or profits it earned from operating a business in a foreign country can claim a federal foreign business income tax credit. This credit reduces the Part I tax that the corporation would otherwise have to pay.
Comments on Funding:
Rolling deadline
Eligibility:
Applicants must be a corporation that pays foreign tax on income or profits it earned from operating a business in a foreign country.
Application Steps:
To claim this credit, applicants must:
1. complete Part 2 of Schedule 21;
2. calculate the foreign business income tax credit for each country separately;
3. use more than one schedule if more space is required;
4. add all allowable foreign business income tax credits in column J on Schedule 21. Then, enter the total allowable credits or a lesser amount on line 636.
Documentation Needed:
Applicants must provide a completed Part 2 of Schedule 21.
Other Things to Note:
About the author
Maurice
