Foreign Tax Credits

Israeli residents who pay taxes abroad on foreign-source income can often claim a foreign tax credit to avoid double taxation. Understand how the credit system works, the per-country and per-basket limitations, which foreign taxes qualify, how to document credits, and the interaction between credits and treaty benefits.

  1. Foreign tax credit - principles

    The principles of the credit for tax paid abroad

  2. Indirect tax credit

    Credit for tax paid by a foreign company

  3. Foreign tax credit transfer

    Transferring excess credits to future years

  4. Credit against foreign tax deduction

    The difference between a tax credit and a tax deduction

  5. Report on taxes paid abroad

    How do you report a foreign tax credit?