Foreign Tax Credit – NBC Institute

ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits

Advise on double taxation relief for SOKGlobal Limited and compute the applicable relief.

Question

SOKGlobal Limited is a wholly owned Nigerian company that deals with stationery items. It has a functional business unit in Cape Town, South Africa. The company’s operating results for the year ended December 31, 2017, are as follows:

Profit attributable to South Africa business: ₦8,740
Capital allowances agreed with tax officials for Nigeria and South Africa businesses were ₦5,500,000 and ₦2,210,000, respectively.

Required:
Advise the company on the double taxation relief applicable to the company, showing the necessary computations.

Answer

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Tags: Corporate Tax, Double Taxation, Foreign Tax Credit, International Taxation, Tax Relief
Level: Level 3

Topic: Double Taxation Reliefs and Credits, Taxation of Companies

AT – April 2022 – L3 – Q1c – International taxation

Calculate chargeable income, tax payable, and foreign tax credit for Lawaaba Guo.

Question

Lawaaba Guo is a Ghanaian born in Nigeria and has lived all his life there. He got an opportunity to relocate to Ghana and took up an appointment as a lecturer in one of the prestigious universities within the first three months of his arrival in Ghana in 2018.

He took up employment with ABB Ltd as a procurement officer. The following relates to his employment details for 2020 year of assessment:

Salary: GH¢200,000
Commission from employers: GH¢10,000
Interest on savings from a Bank in Ghana (Gross): GH¢1,000

His investment income and other returns received from Nigeria are as follows:

Dividend of US$ 12,000 net of tax. Tax of US$ 1,000 was paid.
Rental Income of USD 6,000 gross with tax at the rate of 10%.
On-line consultancy fee USD 20,000 net of tax. Tax of USD1,500 was paid.

Additional information:

He is married.
Children (2): both schooling in Nigeria.
Contributes to Social Security at 5.5%.
Exchange Rate USD1 = GH¢5.2.

Required:
Determine the following:
i) Chargeable Income
ii) Tax Payable
iii) Amount of foreign credit relief granted

Answer

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Tags: Foreign income, Foreign Tax Credit, Resident Income, Tax computation
Level: Level 3

Topic: International taxation
Series: APR 2022

AT – Nov 2019 – L3 – Q2a – International taxation

Outline the conditions required to satisfy before foreign tax credit relief is granted.

Question

Any resident person other than a partnership may be allowed a foreign tax credit relief on any income that is earned outside Ghana subject to the fulfillment of certain conditions, which are critical in the granting of the relief.

Required:

What are the conditions to satisfy before the foreign tax credit relief is granted?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Foreign Tax Credit, International Taxation, Tax Relief
Level: Level 3

Topic: International taxation
Series: NOV 2019

ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits

Advise on double taxation relief for SOKGlobal Limited and compute the applicable relief.

Question

Profit attributable to South Africa business: ₦8,740
Capital allowances agreed with tax officials for Nigeria and South Africa businesses were ₦5,500,000 and ₦2,210,000, respectively.

Required:
Advise the company on the double taxation relief applicable to the company, showing the necessary computations.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Tax, Double Taxation, Foreign Tax Credit, International Taxation, Tax Relief
Level: Level 3

Topic: Double Taxation Reliefs and Credits, Taxation of Companies

AT – April 2022 – L3 – Q1c – International taxation

Calculate chargeable income, tax payable, and foreign tax credit for Lawaaba Guo.

Question

He took up employment with ABB Ltd as a procurement officer. The following relates to his employment details for 2020 year of assessment:

Salary: GH¢200,000
Commission from employers: GH¢10,000
Interest on savings from a Bank in Ghana (Gross): GH¢1,000

His investment income and other returns received from Nigeria are as follows:

Dividend of US$ 12,000 net of tax. Tax of US$ 1,000 was paid.
Rental Income of USD 6,000 gross with tax at the rate of 10%.
On-line consultancy fee USD 20,000 net of tax. Tax of USD1,500 was paid.

Additional information:

He is married.
Children (2): both schooling in Nigeria.
Contributes to Social Security at 5.5%.
Exchange Rate USD1 = GH¢5.2.

Required:
Determine the following:
i) Chargeable Income
ii) Tax Payable
iii) Amount of foreign credit relief granted

Answer

Find Related Questions by Tags, levels, etc.

Tags: Foreign income, Foreign Tax Credit, Resident Income, Tax computation
Level: Level 3

Topic: International taxation
Series: APR 2022

AT – Nov 2019 – L3 – Q2a – International taxation

Outline the conditions required to satisfy before foreign tax credit relief is granted.

Question

Required:

What are the conditions to satisfy before the foreign tax credit relief is granted?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Foreign Tax Credit, International Taxation, Tax Relief
Level: Level 3

Topic: International taxation
Series: NOV 2019

Question Tag: Foreign Tax Credit

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ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits

Advise on double taxation relief for SOKGlobal Limited and compute the applicable relief.

AT – April 2022 – L3 – Q1c – International taxation

Calculate chargeable income, tax payable, and foreign tax credit for Lawaaba Guo.

AT – Nov 2019 – L3 – Q2a – International taxation

Outline the conditions required to satisfy before foreign tax credit relief is granted.

ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits

Advise on double taxation relief for SOKGlobal Limited and compute the applicable relief.

AT – April 2022 – L3 – Q1c – International taxation

Calculate chargeable income, tax payable, and foreign tax credit for Lawaaba Guo.

AT – Nov 2019 – L3 – Q2a – International taxation

Outline the conditions required to satisfy before foreign tax credit relief is granted.

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ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits

Advise on double taxation relief for SOKGlobal Limited and compute the applicable relief.

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AT – April 2022 – L3 – Q1c – International taxation

Calculate chargeable income, tax payable, and foreign tax credit for Lawaaba Guo.

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AT – Nov 2019 – L3 – Q2a – International taxation

Outline the conditions required to satisfy before foreign tax credit relief is granted.

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ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits

Advise on double taxation relief for SOKGlobal Limited and compute the applicable relief.

You're reporting an error for "ATAX – May 2019 – L3 – Q5c – Double Taxation Reliefs and Credits"

AT – April 2022 – L3 – Q1c – International taxation

Calculate chargeable income, tax payable, and foreign tax credit for Lawaaba Guo.

You're reporting an error for "AT – April 2022 – L3 – Q1c – International taxation"

AT – Nov 2019 – L3 – Q2a – International taxation

Outline the conditions required to satisfy before foreign tax credit relief is granted.

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