The Resource The impact of foreign tax credit of the American Taxpayer Relief Act of 2012

The impact of foreign tax credit of the American Taxpayer Relief Act of 2012

Label
The impact of foreign tax credit of the American Taxpayer Relief Act of 2012
Title
The impact of foreign tax credit of the American Taxpayer Relief Act of 2012
Creator
Subject
Language
  • eng
  • eng
Summary
Under the American Taxpayer Relief Act of 2012 (the Act), the highest individual income tax rate is increased from 35 percent to 39.6 percent and the qualified dividends and long-term capital gains tax rate from 15 percent to 20 percent. If a taxpayer receives qualified dividends or long-term capital gains from a foreign country, these changes immediately affect the "rate differential portion". As a consequence, there are far-reaching impacts on the foreign tax credit allowed. Further, prior to the Act, there was only one tax rate for qualified dividends and long-term capital gains that affected the foreign tax credit, i.e., 15 percent; whereas, under the Act, there are now two different rates, i.e., 15 percent and 20 percent. This additional complication has resulted in a series of problems for the computation of foreign tax credit allowed. This article investigates the impact of the Act on the foreign tax credit allowed. It further offers some tax planning strategies for foreign tax credit. Many examples are given for illustrative purposes
Citation source
In: International tax journal. - Chicago. - Vol. 39 (2013), no. 6 (November-December) ; p. 21-30, 70-71
http://library.link/vocab/creatorName
Yang, J.G.S
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • foreign tax credit
  • individual income tax
  • tax planning
Label
The impact of foreign tax credit of the American Taxpayer Relief Act of 2012
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2013/G-I/ITJ/6_21-30.zip
Publication

Library Locations

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