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Double-Tax Credit Calculator
Enter the foreign income, the tax already paid abroad and the home rate that applies to it. The result shows the credit allowed, the net home tax and what remains after both systems.
Credit limits, carry-forward rules and the income covered differ by country and treaty. Confirm the method with the tax authority or a local adviser.
A credit, not a refund
A foreign tax credit reduces the tax owed at home by tax already paid abroad. It is a relief against a liability, so it cannot normally produce a payment from the tax authority when the foreign tax is higher than the home tax.
That is why the foreign rate is an input. Entering the actual tax paid shows whether the credit is used in full or whether part of it is stranded by the home limit.
The limit is the whole calculation
Most systems cap the credit at the home tax attributable to the same income. The cap can be expressed as a share of the home tax, which is the field this calculator uses, or computed by income basket in the actual return.
When the foreign tax exceeds the cap, the excess may carry forward, carry back or be lost depending on the country. The calculator shows the excess inside the credit line, not as a separate refund.
Frequently asked questions
Is the credit always the tax paid abroad?
No. It is the lower of the foreign tax paid and the home tax attributable to that income, subject to the limit you enter.
What happens to foreign tax above the limit?
It may carry forward or back, or be lost, depending on national rules and the income category. The tool does not model carry-forward.
Does the calculator include social security contributions?
No. It covers income tax only. Social contributions and their treaties are separate.