Credit against foreign tax deduction

difference

Credit: deducted from the tax (shekel against shekel). Deduction: Subtracted from income (saves only according to the marginal tax rate). Credit is always better.

Choice

You can choose between credit and deduction. Usually a credit is better, unless the tax rate abroad is very high.

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.