CAF-2 · Chapter 13 · Question 6 of 15
To successfully claim a Foreign Tax Credit for a specific tax year, what is the maximum time limit within which the foreign income tax must actually be paid?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Within two years after the end of the tax year in which the foreign income was derived.
Explanation
A foreign tax credit shall be allowed only if the foreign income tax is paid within two years after the end of the tax year in which the foreign income to which the tax relates was derived by the resident taxpayer.
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