CAF-2 · Chapter 13 · Question 5 of 15
If a taxpayer’s available Foreign Tax Credit exceeds their Pakistan tax payable on that foreign income for the year, what is the treatment of the unadjusted excess credit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) D) It cannot be refunded, carried back, or carried forward.
Explanation
Any tax credit or part of a tax credit allowed for a tax year which is not credited shall not be refunded, carried back to the preceding tax year, or carried forward to the following tax year.
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