Defining Foreign Source Income (FSI)
Where a system imposes limits on FTC based in some manner on foreign source income (FSI), the system generally provides rules for determining whether income is foreign or domestic source. These rules may be relatively simple or quite complex. (For simplicity of wording below, the phrase "sourced to" specifies in the target the place (foreign or domestic) constituting the source of the income in the object for computing FTC limitation.) The following discussion explains U.S. and Canadian rules and certain other variations on one of these rules to illustrate the manners in which systems define FSI and the potential level of complexity. These rules vary highly by country.
Read more about this topic: Foreign Tax Credit
Famous quotes containing the words defining, foreign, source and/or income:
“The industrial world would be a more peaceful place if workers were called in as collaborators in the process of establishing standards and defining shop practices, matters which surely affect their interests and well-being fully as much as they affect those of employers and consumers.”
—Mary Barnett Gilson (1877–?)
“It’s not that I don’t want to be a beauty, that I don’t yearn to be dripping with glamor. It’s just that I can’t see how any woman can find time to do to herself all the things that must apparently be done to make herself beautiful and, having once done them, how anyone without the strength of mind of a foreign missionary can keep up such a regime.”
—Cornelia Otis Skinner (1901–1979)
“It is the child in man that is the source of his uniqueness and creativeness, and the playground is the optimal milieu for the unfolding of his capacities and talents.”
—Eric Hoffer (1902–1983)
“You boast of spending a tenth part of your income in charity; maybe you should spend the nine tenths so, and done with it.”
—Henry David Thoreau (1817–1862)