Double Taxation Calculator — Calculate International Tax Liability

Double Taxation Calculator

Calculate your international tax liability and double taxation impact. Determine tax credits, relief amounts, and net tax due based on income and tax rates in multiple countries.

Step 1: Income & Source Country

$75,000
25%

Understanding Source Country Tax

The source country is where the income was earned. This country typically has the primary right to tax this income before any double taxation relief is applied.

Step 2: Residence Country & Relief

30%

About Double Taxation Relief

Foreign tax credits allow you to deduct taxes paid to the source country from your residence country tax bill. The exemption method excludes foreign income from residence country taxation.

Double Taxation Calculation Results

Summary
Country Comparison
Breakdown

Net Tax Liability After Relief

$22,500
After $18,750 foreign tax credit applied
Source Country Tax
$18,750
Residence Country Tax
$22,500
Double Taxation Relief
$18,750
Total Tax Without Relief
$41,250

Country Tax Rate Comparison

Country Tax Rate Tax Amount After Relief

Tax Breakdown by Relief Method

Double Taxation Relief Formula

Net Tax = Residence Tax – MIN(Source Tax, Residence Tax on Foreign Income)

Under foreign tax credit method, you can credit taxes paid to the source country against your residence country tax liability, limited to the residence country tax on the foreign income.

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