Revenue Note for Guidance
This section provides for a credit to be allowed against the corporation tax arising in respect of a CFC charge for any double tax arising on the chargeable income.
(1) “relevant tax” means tax paid by the CFC arising in its jurisdiction of residence or any other jurisdiction, except the State, which corresponds to corporation tax.
(2) “creditable tax” in respect of an accounting period is the total of:
(3) Any amount of foreign tax, relevant tax or foreign QDTT that falls to be repaid to the CFC or any other person and any amount of foreign QDTT that is not paid within 4 years from the end of the fiscal year in which it becomes due shall be excluded.
(4) The credit allowed is ringfenced and limited to the amount of the CFC charge.
(5) Any amount arising in respect of a qualified IIR (within the meaning of section 111A(1)), or a qualified UTPR (within the meaning of section 111A(1)) is excluded from the meaning of “creditable tax”.
Relevant Date: Finance Act 2024