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- 3 Marks
Question
Any resident person other than a partnership may be allowed a foreign tax credit relief on any income that is earned outside Ghana subject to the fulfillment of certain conditions, which are critical in the granting of the relief.
Required:
What are the conditions to satisfy before the foreign tax credit relief is granted?
Answer
The foreign tax credit relief is granted subject to the following conditions:
- Income Assessment: The income corresponding to the tax must have been assessed.
- Tax Credit Certificate: Submission of a tax credit certificate from the tax department of the foreign country signifying the nature of income and the quantum of taxes paid by the taxpayer.
- Official Receipt: Providing an official receipt or a functional equivalent of a tax credit certificate from the tax department of the foreign country.
- Tags: Foreign Tax Credit, International Taxation, Tax Relief
- Level: Level 3
- Topic: International taxation
- Series: NOV 2019
- Uploader: Theophilus