Foreign Income Tax Offset (FITO) Calculator
If you're an AU tax resident who paid tax overseas, FITO prevents double taxation. Calculate your offset limit below.
Who can claim FITO? Only Australian tax residents who paid foreign tax on income also taxable in Australia. Non-residents generally don't need FITO because they're only taxed on AU-source income.
Your Income Details
How FITO Works
The FITO offset is the lesser of:
- The foreign tax actually paid on the income
- The FITO limit — calculated as:
AU tax on total income × (foreign income ÷ total income)
If your foreign tax exceeds the limit, the excess is wasted — it cannot be carried forward in Australia (unlike the US Foreign Tax Credit). This is a key difference for Aussie expats in high-tax countries.
$1,000 rule: If total foreign tax paid is $1,000 or less, the offset equals the actual foreign tax paid — no limit calculation needed. This simplifies things for small amounts of foreign income.
DTA Interaction
If Australia has a DTA with the country where you paid tax, the treaty may limit the foreign tax rate. For example:
- UK dividends: DTA limits WHT to 15% (instead of UK's standard rate)
- US interest: DTA limits WHT to 10%
- NZ employment: Tax paid in NZ on NZ-source employment income qualifies for FITO
FITO can only be claimed for tax that you were required to pay under the DTA — not tax paid in excess of treaty rates.