Creditable Foreign Tax

Creditable Foreign Tax means:
a tax qualifying for the foreign tax credit. The predominant character of the tax must be that of an income tax in the U.S. sense. Three requirements must be met: realization, gross receipts, and net income. A taxpayer may elect to claim a foreign tax credit only for income, war profits, and excess profits taxes paid on account to a foreign country during a taxable year. Former IRC (check if this IRC provision is current here) §901(b)(l).

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.